Record rubber level pushes Continental to raise tyre prices
German auto parts maker Continental said Monday it would raise the price of tyres by an average of five percent next year owing to a record high in rubber prices.
The measure will be applied to replacement summer tyres sold under several brand names by Continental, the biggest European tyre distributor, a statement said.
"At well over three dollars per kilo, the prices for natural rubber are now at a historic high." the company explained.
Natural rubber accounts for more than 40 percent of a tyre, and Continental was working hard "to find alternatives to gradually replace it," the statement added.
Rival tyre maker Michelin said in July it might also have to raise its prices.
© 2010 AFP