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Which tire manufacturers will be affected by GM’s summer plant closures?

GM's recently announced plant closures are not a good sign for the tire industry's top manufacturers.

GM's recently announced plant closures are not a good sign for the tire industry's top manufacturers.

By now you’ve probably heard that GM has decided to idle its U.S. plants for 9 weeks during the summer in a desperate effort to cut costs and stay afloat. In addition to these temporary closures, GM also announced the permanent closures of 16 of their assembly plants by 2012. The Pontiac brand is also on its way out. These measures reflect the state of the economic situation, the state of the auto industry, and illustrate the future of some of the tire industry’s biggest manufacturers. After all, all of those plants have been using a fair amount of original equipment tires that will soon no longer be needed. So which manufacturers are going to be affected?

According to Modern Tire Dealer, the affected GM plants receives 38% of its OE light vehicle tires from Goodyear. After Goodyear, a 31% chunk comes in from Bridgestone, split 18%/15% between Bridgestone and Firestone lines. Continental is next with a 14% share, and the list is rounded out by Michelin, BFGoodrich, Hankook,  and Pirelli. It will be interesting to see how the GM plant closures and the elimination of the Pontiac brand affect the tire industry, but suffice to say, it won’t be in a positive way. With manufacturers already struggling with stagnating demand, it looks to be a tough summer for the world’s top tire companies.

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Filed under: Bridgestone Tires, Michellin Tires, Tire News, , , ,

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