2 tire marketers hiking prices
AKRON-Two California-based tire marketers are raising prices, citing continuing raw material price hikes as well as higher transportation and operating costs.
Toyo Tire (U.S.A.) Corp. boosted prices up to 5 percent on its passenger, light truck and medium truck tires and up to 7 percent on its off-the-road tires, effective Oct. 1.
This is the third price increase this year for Cypress, Calif.-based Toyo, which raised prices for commercial truck and bus tires 5 percent and 7 percent on off-the-road tires on April 1. It also raised prices on passenger and light truck tires 8 percent on Jan. 1.
Ontario, Calif.-based Nexen Tire America Inc. said it will raise prices on its passenger and light truck tires up to 6 percent, effective Nov. 1. The increases will vary by distribution channel and product line.
Kumho secures credit, ad agency
NORWALK, Conn.-Kumho Tire U.S.A. Inc. has secured a $150 million revolving credit facility from GE Commercial Finance to be used for ``working capital'' needs.
``We selected GE as our financing partner because their team really understands the automotive sector and tailored the loan to best meet our liquidity needs,'' said H.W. Kim, chief financial officer of Kumho Tire U.S.A.
Tom Quindlen, president and CEO, GE-Corporate Lending, said the facility will provide the tire maker with ``smarter capital'' for its business plans.
Kumho Tire U.S.A., based in Rancho Cucamonga, Calif., is the U.S. marketing arm of South Korea's Kumho Tire Co. Inc. GE Commercial Finance Corporate Lending is a provider of asset-based, cash flow, structured finance and other complementary solutions for mid-size and large companies.
Kumho also announced it has chosen Cleveland-based Arras Group Inc. as its advertising agency of record.
``Our U.S. sales have grown tremendously in the last five years,'' said Mike Leverington, director of marketing. ``We have aggressive new sales objectives for the next decade, and we believe the Arras Group is the marketing partner that will help us achieve those goals.''