Potholes Ahead for Global Tire Makers

Rising materials costs and heavy benefit burdens are giving the rubber barons a bumpy ride

The $70 billion global tire market is dominated by a few large players whose strong brand names and market positions have so far helped them weather major industry difficulties such as rising raw-material costs and the increasing burden of employee benefit costs. In 2006, however, they will find it more difficult to counter these trends as they have in the past with productivity gains, pricing improvements, and cost cutting.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.