Record rubber level pushes Continental to raise tyre prices

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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

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