Goodyear increases tire prices to offset costs

AP News
Posted: Nov 12, 2009 4:40 PM

Goodyear is raising the price of tires sold in North America by 6 percent to offset higher raw material costs, the world's largest tire maker said Thursday.

Spokesman Jim Davis said the increase is the company's first price increase in more than a year. It last raised prices in September 2008 by 10 percent, he said.

The price increase affects all its consumer replacement tires. The increase will be felt by the company's dealers and distributors, who buy tires directly from Goodyear. It is up to the distributors whether to pass the increase on to consumers, Davis said.

Goodyear Tire & Rubber Co., based in Akron, Ohio, last month said its third-quarter profit more than doubled. However, it is expecting an operating loss in its key North America market.

Shares of Goodyear rose 21 cents to close Thursday at $13.74.