Bridgestone to Raise Tyre Prices in Japan
The Bridgestone Corporation has announced that it will raise the replacement market prices of tyres, tubes and flaps sold in Japan. The move will take effect from 1 February 2006. Prices for winter tyres will be increased on 1 April 2006. Specific price increases include five per cent for passenger car and light truck tyres, seven per cent for truck and bus tyres, seven per cent for construction vehicle bias tyres, 10 per cent for construction vehicle radial tyres, and five per cent for other kinds of tyres (excluding those for motorcycles) and for tubes and flaps. Bridgestone points out that these figures are the average increases across each of the respective ranges.
Mainly as a result of the sharp rise in the price of natural rubber, Bridgestone increased prices for tyres sold in the replacement market in Japan by an average of five per cent to six per cent in June last year. The price of natural rubber has remained high, however, and coupled with this the manufacturer says higher crude oil prices have forced price rises in synthetic rubber and carbon black. Other raw materials such as steel cord have also been climbing. Bridgestone warned that further structural problems with global supply and demand are expected to drive prices even higher going forward.
The Japanese manufacturer says it has endeavoured to offset the rises in raw material prices through improvements in productivity and cost savings. But those rises have proven too large and persistent to absorb entirely through internal measures.