Rising Oil Costs Also Inflate the Price of Tires
From Times Wire Reports
Surging oil prices are pushing up the cost of tires, and a number of manufacturers have announced price increases for fall.
Goodyear Tire & Rubber Co. has announced three price hikes this year as oil nears $70 a barrel, and prices for steel and natural rubber are also rising.
Its latest hike, an increase of 5% to 8% depending on the tire model, took effect last week.
A $1 change in the cost of oil costs the company about $20 million, said spokesman Jim Davis.
The latest increase in Goodyear’s prices came after the cost of natural rubber rose 40% over a 60-day period this summer.
