FONTANA, Calif. (Feb. 4, 2011)—Falken Tire Corp. said it is raising prices on all Falken- and Ohtsu-brand tires by 5 to 8 percent, depending on size, with additional in-line adjustments as needed, effective March 1.
The company cited “severe challenges in the unprecedented escalation of raw material costs” as the reason for the increase.
Richard Smallwood, Falken president and chief operating officer, said the price hikes will affect all tire lines, including consumer and commercial.
“Though it is difficult, if not impossible, to predict how long this situation will occur, we do know that we will have to adjust to this new reality,” Smallwood wrote to customers. “As such, FTC has taken the necessary steps to reduce operating expenses and become a much leaner and more efficient organization.”
As a result of Falken's efforts, he continued, the Fontana-based tire marketer “has been able to reduce operating expenses by over 25 percent versus the previous year.”