Cooper Tire Reducing North American Production
A decline in tyre demand and projected shortages of some raw materials have led Cooper Tire & Rubber to announce on June 23 that production in its North American facilities would be reduced during the second quarter of this financial year. The lowering of production during the quarter will, says the company, cost an estimated US$12 to 14 million.
Cooper Tire’s first-quarter results showed the impact of weakening North American markets and escalating raw material costs. “Not only are fewer new vehicles selling, but the soft economy is also taking the air out of replacement tyre purchases,” commented CRT Capital Group analyst Kirk Ludtke, according to Dow Jones Newswire.