Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 14, 2000 02:00 AM

Playing follow the leader in pricing has downside

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    It took less than two months after the official end of the U.S. Justice Department´s probe into tire industry pricing practices for tire makers to launch a full round of price hikes. They better be careful.

    Yes, tire companies can claim raw material costs warrant tire price hikes. And it´s indisputable tires are underpriced for the amount of technology that goes into the product.

    The fact remains tire price increases were few and far between during the time of the Justice Department investigation. Maybe tire makers were just a bit gun shy.

    In the years prior to the August 1995 start of the investigation, tire price increase announcements came like clockwork, at least two or three times every year.

    The typical scenario: One tire firm would come out with an increase, followed by similar action by its competitors. One or more companies would try to gain market share by breaking ranks and cutting the increase. Invariably, little if any of the price hike would stick.

    These rites of spring and fall—and often the end of the year to spur pre-buying by customers—lasted into 1995. While market conditions undoubtedly had some effect on pricing practices, 1996 and 1997 were conspicuous for their absence of mass price increases. The following year, 1998, brought a couple individual announcements, and by the beginning of this year, there were a few increases planned for individual lines.

    It´s improbable tire companies conspired on prices, given the depressed nature of tire prices over such a long period of time. But tire makers should remember it was their lemming-like behavior in price increases that caught the Justice Department´s attention in the first place. It could happen again.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Stakes high as global NR industry urgently seeks alternate supply
    2
    EV owners struggle to find replacements for OE tires
    3
    Updated: Conti fined for compound mixer explosion, shears accident
    4
    Tokai Carbon CB Borger facility earns sustainability designation
    5
    Carbon black supply shortages force Europe to seek alternative sources
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION