The rubber crisis is here and affecting the tire supply chain for nearly every automaker and third party tire suppliers.
The U.S. automotive industry has been plagued with plant shutdowns due to the COVID-19 pandemic and a global semiconductor chip shortage. Now raw material for rubber is in short supply. Rubber producers are battling climate change, the pandemic, a destructive fungus, shipping container shortages and port disruptions.
The world is heavily dependent on Asia, relying on it for 90 percent of the natural rubber supply. In March 2021, the U.S. imported $140 million worth of natural rubber alone, according to Census data.Pirelli Previews its New Formula One, Consumer Tire Strategies Tire manufacturers are responding to higher prices for raw materials caused by the increasing demand and supply chain issues by raising the cost of their tires., tire prices had been increasing before reports of a shortage, mostly because Americans have been buying more trucks and SUVs than cars, which have larger tires. The looming threat of a rubber shortage holds the potential to drive those prices even higher.
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