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Automakers Struggling With Tire Shortages


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Automakers Struggling With Tire Shortage.

AutoWeek (6/27, Sedgwick, Colias) reported, "North American automakers are struggling with a nagging shortage of tires, caused in part by tire plant closings and rising demand for low-volume specialty tires." And as a result, "automakers are paying much higher prices -- double-digit percentage increases from a year ago -- as tire makers gain pricing power." Autoweek notes, "The shortage doesn't appear to have significantly crimped production plans, though automakers are scrambling to secure supplies." One purchasing expert predicted that the shortage would take over a year to sort itself out.

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