Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
    • CarAdvise partnering with RepairSmith mobile repair services
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
      Point S posts strongest year ever in sales profit, growth, store growth
      Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
    • Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
      Michelin upgrades 2 lines of Energy-branded truck tires
      TravelCenters plans 6 TA Express sites in California in 2021
      Carlisle TyrFil broadens recycling technology options
    • USTMA joins coalition supporting passage of Equality Act
      McMahon's Best-One increases its minimum wage to $15
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin driving for '100% sustainable' tires by 2050
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
      Goodyear extends partnership with Nürburgring race circuit
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      Michelin upgrades 2 lines of Energy-branded truck tires
      Falken revamps winter tire lineup with studless Eurowinter products
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      New Nexen Tire Garage offers dealers digital resources
      CarAdvise partnering with RepairSmith mobile repair services
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
    • Pennzoil offering carbon-neutral lubricants for passenger cars
      Washington dealership uses new-school solution for recruiting auto techs
      Marinucci: Customers may ignore dangerous conditions
      Automotive Lift Institute introduces Check360 inspection, label
    • SEMA survey shows resilient auto aftermarket in 2020
      SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
    • SEMA survey shows resilient auto aftermarket in 2020
      Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      New Nexen Tire Garage offers dealers digital resources
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      Tire changer types, tips and trends
      How to clear rim rust and corrosion
      An introduction to demounting, mounting and inflation
    • Video: Safety
      Customers
      Considerations for shop safety policies
      Introduction: Creating a culture of safety
    • Video: Tire Repair
      Essential tools, materials and equipment for tire repair
      An introduction to tire repair
      How to properly patch a puncture
    • Video: TMPS Service
      The life-saving work of TPMS
      An introduction to TPMS service
      The importance of proper relearn procedures
    • Video: Training
      Internship ideas to attract tech talent
      Choosing the right auto service tech school
      Intro: Finding and training technicians
    • Video:Vehicle Lifting
      The gravity of proper lift points
      Safety essentials when using jack stands
      An introduction to lifts and lift safety
    • Video: Wheel Torque
      The importance of torque specifications
      Introduction to proper wheel installation
      Torque check and recheck recommendations
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
July 03, 2000 02:00 AM

Need ga$?

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON—Rubber manufacturers and tire dealers in the Midwest aren't happy with skyrocketing oil and gasoline prices, but they aren't quite in a panic yet.

    "We need to determine whether prices are going to stay where they are, or start going down after a while," said a spokesman for retreading equipment and materials supplier Bandag Inc., whose headquarters in Muscatine, Iowa, place it right in the middle of one of the hardest-hit states.

    Major tire and rubber product manufacturers, reacting to the rising price of crude oil, announced a massive round of price increases this spring, long before gas prices soared to as high as $2.50 per gallon in the Chicago and Milwaukee areas.

    Illinois had the highest average gas price in the nation in June—$1.98 per gallon—according to the American Automobile Association and the Associated Press. The month before, the average per-gallon price in the state was $1.66.

    Similar heart-stopping leaps in gas prices between May and June were recorded in such states as Michigan (to $1.96 from $1.50), Wisconsin (to $1.91 from $1.58), Indiana (to $1.77 from $1.47), Minnesota (to $1.75 from $1.51), Iowa (to $1.73 from $1.48) and Ohio (to $1.71 from $1.52).

    Though reasons ranging from federal requirements for reformulated gasoline to interruption of service from a Midwestern oil pipeline were advanced for the spike in prices, none of them—even combined—seemed to account for such a precipitous climb.

    Indiana alleviated the crunch on its residents by declaring a 60-day moratorium on its gasoline tax, saving Hoosiers seven to 10 cents per gallon. Illinois planned a special session of its legislature to discuss a similar move. President Clinton, however, shied away from suspending the federal gas tax, saying such a move would take needed funds away from highway projects.

    Meanwhile, rubber manufacturers and tire dealers in the Midwest are placing their concerns in perspective.

    Oil prices have affected the overall raw materials costs at Cooper Tire & Rubber Co., although the company prefers not to discuss how much, a spokesman said.

    "There's an overall negative effect, but not that much, and there are things going on within our company that should offset that in the short run," he said.

    For Bandag—which raised prices on its retreading materials 3.5 percent on April 1—the biggest issue is how its truck fleet customers will be affected, a spokesman said.

    Tire dealers in the Midwest face the question of not only how customers will be affected, but how those customers who haul tires and other goods will affect the dealers.

    "The only problem right now seems to be coming from the wholesale side. Delivery expenses have doubled," said Terri Cole, executive director of the Illinois State Tire Dealers & Retreaders Association. Instead of shipping a tire order immediately, "our members are waiting until they get a number of orders from the same area before they deliver."

    High gas prices are "a two-fold problem," said John Buettner Sr., executive director of the Indiana Tire Dealers & Retreaders Association.

    "It costs more to operate your road service and wholesale delivery, and that certainly has an effect on your bottom line," he said.

    But there is an upside to the situation, Mr. Buettner said. "This presents a real opportunity for dealers to make a more conscious effort to alert their customers to maintain proper air pressure, rotate their tires and do other things to save fuel."

    Brett Matschke, general manager of Richlonn's Tire & Service Center in Greendale, Wis., said he hasn't seen any effect yet from the higher gasoline prices.

    "I can't say we can correlate any decline in business to the higher prices," Mr. Matschke said. "Our feeling, however, is that if this continues, people will be less likely to drive and to buy tires."

    Vendors are starting to add surcharges, he said, but Richlonn's hasn't been much affected by this because its business is strictly retail.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award