QUINCY, Ill.Falling farm and OTR tire pricesthe result of heavy equipment makers' and mining companies' releasing tires from their inventories into the aftermarketshould last only a few months, Titan International Inc. Chairman and CEO Maurice Taylor said recently.
In a prepared release commenting on the first five months of 2013, Mr. Taylor attributed the temporary supply situation on some short-term decision making.
I think of all the overtime and weekend work to produce tires that go into building inventory, and then when they see the storage cost, they discount them into the aftermarket, he said.
Mr. Taylor estimated the OEMs and mining companies have dropped millions of dollars worth of farm and OTR tires into the aftermarket in recent weeks.
I have stated over and over that all the talk of tire shortages has been false, he said, while also noting that falling raw materials costs have driven down selling prices.
Separately, Mr. Taylor said Titan recently sold 44 percent of its Titan Australia business to Australia's Planet Groupwith which Titan has a joint venturein order to get the best results and grow the business.
Contributing to Titan's growth would be the improved performance of Titan's Bryan, Ohio, OTR tire plant under the direction of Titan Tire Chairman and Titan International Executive Vice President Bill Campbell, the company said.