Michelin North America has joined other manufacturers in increasing its tire prices to counterbalance the rise in operating costs, plus other market factors.
On Nov. 1, Michelin North America, Inc., announced it will increase U.S. national account prices by up to 8 percent for all commercial brand products and services, effective on Dec. 1, 2018.
This will also include a 5 percent increase in tire prices for passenger and light truck tires under the Michelin, BF Goodrich and Uniroyal brands. Michelin will also be increasing its tire prices on two-wheel segments (motorcycle tires).
Michelin’s tire increase will have an effect on commercial medium-duty segments as well.
This increase, effective December 2018, is the second increase for Michelin North America within the past year and a half.
In 2017, a number of tire manufacturers increased their prices, due to the increased costs of raw materials, technology enhancements and other market conditions.
Cooper Tires, Bridgestone Firestone and Michelin all increased their prices by up to 8 percent on their entire product lines, which include commercial vehicles, light trucks and passenger vehicles.
However, Michelin North America is joining other companies in boosting its prices in 2019. According to Modern Tire Dealer, Sentury, Continental, Goodyear and Toyo will also increase their prices.
Goodyear attributes the price hike to higher business costs, while the VP for Toyo Tires was quoted as saying that market demands, and government actions, were two reasons for the increase in prices for select passenger, light truck and commercial truck tires.
This is the second wave of tire increases this year after a tariff increase went into effect in July.
This year, after President Trump increased tariffs on various imports from China, including tires, there was an increase in prices.
The 10 percent tariff hike, plus the increase in synthetic and natural rubber prices, were two of the main reasons why select manufacturers increased their prices.
Bridgestone Americans and Kumho Tires were some of those manufacturers that increased their tire prices during this time, to keep up with operating costs.