TAG SEARCH RESULT: Tire Costs

A fleet cost reduction program goes straight to the corporate bottom line. If a company operates at a 10% annual net profit margin, reducing annual fleet expenses by $100,000 is the equivalent of generating $1 million in sales. Although fleet managers manage hundreds of thousands to tens of millions of dollars in corporate assets, only half are incentivized to achieve targeted performance goals. I advocate incentivization should be a universal best practice extended to all fleet managers.

As a wear item, tires are a depreciating asset. Your job, as the fleet manager, is to slow the rate of depreciation. Replacement tires as a cost category are a fleet’s second-largest operating expense, exceeded only by fuel. By maximizing tire tread life, you lower per-mile costs, resulting in fewer premature removals and optimizing the condition of tire casings, allowing for multiple retreads.

FULLERTON, CA - Yokohama Tire Corporation has announced it will implement a price increase of up to 8 percent on all of its commercial truck tires in the U.S., effective February 1.

Tire industry experts foresee another round of tire price increases during calendar-year 2012. In the past, national account tire manufacturers have done their best to shield the fleet industry from price increases by holding prices for a 12-month period. Nowadays, there is concern that national account vendors will no longer be able to continue to absorb these cost increases.

The multiple price increases for replacement tires occurring year-to-date for calendar-year 2011 point to more increases on the horizon. Most tire industry experts foresee tire price hikes continuing for the balance of this calendar-year, with expectations of another round of pricing increases in calendar-year 2012. There are a variety of factors that will influence future tire price.

TORRANCE, CA - The multiple price increases for replacement tires occurring year-to-date for calendar-year 2011 point to more increases on the horizon. Most tire industry experts foresee tire price hikes continuing for the balance of this calendar-year.

UNIONTOWN, OH - Michelin North America and Falken Tire Corp. plan to raise tire prices in November. Goodyear, Bridgestone, and Yokohama raised tire prices in September.

UNIONTOWN, OH - Toyo, Yokohama, Continental, Michelin, Double Coin, Falken, and Hankook all are either raising tire prices in July or have done so recently.

ORLANDO, FL - AAA released the results of its annual “Your Driving Costs” study, which revealed a 3.4-percent rise in the yearly costs to own and operate a sedan in the U.S.

AKRON, OHIO - Goodyear Tire & Rubber Co. will raise prices on its commercial truck tires on April 1, 2011.

FULLERTON, CA - Yokohama Tire Corp. will implement a price increase on all of its light and medium commercial truck tires in the United States effective April 1, 2011.

CYPRESS, CA - Effective March 1, 2011, Toyo Tire U.S.A. Corp. will increase prices on passenger car, light truck, commercial truck and OTR tires by an average eight-percent with in-line adjustments.

Increased cost of replacement tires and PM caused car maintenance expenses in 2007 to increase slightly higher than the prior year. Tire costs were up 4-7 percent, while PM expenses increased 10 percent. Other costs remained flat.