Yokohama Rubber raising export tire prices

TOKYO (April 1, 2011) — Yokohama Rubber Co. Ltd. (YRC) is raising prices on all tires it exports from Japan by up to 15 percent, effective immediately, but Yokohama Tire Corp. (YTC), the firm’s U.S. subsidiary, is holding the line on additional increases for now in the U.S.

YRC cited continuing increases in raw materials costs for its decision.

Yokohama said it will endeavor to hold the increase to a maximum of 15 percent, but higher prices may be necessary for specific regions or products. The firm said further pricing actions may be necessary later, depending on how raw materials costs develop.

Fullerton, Calif.-based YTC said it will monitor the situation and continue to evaluate the market.

YTC already had scheduled a price increase for April 1, of an average of 8 percent in the U.S. on light and medium truck tires. YTC also raised consumer tire prices in North America on March 1 by up to 8 percent.

Yokohama Rubber cited the “skyrocketing” costs of raw materials, including natural rubber, and their elevated levels.

“Despite continuous efforts to boost productivity and efficiency to offset those costs, the company has reluctantly concluded that it has no choice but to increase the prices of its export tire products at this time,” YRC said.

(Source: http://www.tirebusiness.com/subscriber/headlines2.phtml?cat=1&headline=Yokohama+Rubber+raising+export+tire+prices&id=1301694609)