Hankook postpones tyre price hike

Tire Business staff report, a Crain publication

Wayne, New Jersey -In a letter dated Oct. 19 to its “valued customers,” Hankook Tire America Corp. said it is postponing a planned increase in prices on all consumer and commercial tyres, effective with shipments on Nov. 1, “due to our current supply difficulty.”

The original price hike was announced 30 Sept by Todd Hershberger, Wayne-based Hankook's senior vice president, saying the company planned to raise prices in the US by up to 6.5 percent on its full line of passenger, light truck and medium-duty truck tyres. He blamed the costs of energy, raw materials and transportation for the increases.

He noted in his Oct. 19 letter that more details "by pattern and item” will be sent to the company's customers by their Hankook sales representative.

“Hankook Tire recognises that product supply in the tyre industry has been inadequate,” Hershberger said in his letter. “I assure you our team is working diligently to address this situation as it relates to Hankook Tire in our short and long term planning, and we expect you to see the results of these efforts as we move forward in 2011.”

He added that next year the company's customers “will see a significant increase in Hankook Tire marketing efforts with targeted promotions and advertising that help increase your sales and generate Hankook brand awareness.

“We value our relationship and are committed to helping you be successful in the market place. Thank you for your business, understanding and continued commitment to partner with Hankook Tire.”

Hankook last raised prices on passenger, light truck and medium-duty truck tyres by up to 6 percent June 1.