Goodyear Tire CEO Says Company Has Enough Supply To Blunt Looming Rubber Shortage

KEY POINTS

  • The auto industry, hobbled by a shortage in semiconductor chips, could face a headache in a low supply of tires due to a possible rubber shortage.
  • Goodyear Tire & Rubber CEO Rich Kramer told CNBC’s Jim Cramer the company has enough material in hand to avoid a negative impact on business.
  • “I can never say never about something that could happen to southeast Asian rubber trees, but that’s really not been a problem for us, and the team’s been managing it brilliantly,” he said.

Goodyear Tire & Rubber CEO Rich Kramer told CNBC Tuesday that he doesn’t expect a looming shortage in rubber to hurt the tire manufacturer.

Concerns over a low supply of rubber, made from rubber trees mostly grown in Southeast Asia, is the latest problem facing automakers already struggling with a lack of semiconductors.

When asked if the company has enough of the material to produce tires for cars, Kramer said, “short answer is: We do.”

“Essentially what you see happening is … either speculation or it’s a lot of even China [putting] rubber in warehouses,” Kramer said in an interview with Jim Cramer on “Mad Money.”

“It’s something that’s always out there, a lot of speculation going on,” he added. “I can never say never about something that could happen to southeast Asian rubber trees, but that’s really not been a problem for us, and the team’s been managing it brilliantly.”

Source: cnbc.com

Comments

Be the first to comment on this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Go to TOP
LIVE OFFLINE
track image
Loading...