"Ted Mittelstaedt" > wrote in message
...
> Hi All,
>
> I've been recently looking for tires (size 205-70-15) and I am finding
> among the retailers that for the mileage I'm looking for (80K) and
> the UTQGS ratings (treadwear 700, traction A, Temp B) that the
> prices are virtually identical. The biggest difference is pricing for the
> road hazard warranties and for balancing, etc. from the tire dealers.
>
> What I really don't understand is why this is the case. For example,
> Goodyear tires are manufactured in the US, by an American-owned company.
> Michelin, and Bridgestone/Firestone tires are manufactured in China by an
> American-owned company. Lastly, Toyo/Tourevo tires are an Asian-owned
> firm and are manufactured in Asia.
>

I believe that Michelin is a French company. According to their world web
site, they produce tires in 19 countries, including the U.S.

Bridgestone, which owns Firestone, is a Japanese company with 58 plants in
25 countries, including the U.S.

Toyo Tire and Rubber Company is a Japanese company with plants in Asia and
the U.S.

> I understand reading from the trade rags that US companies have
> outsourced manufacturing to Asia to save money. I also understand from
> the trade rags that CEO's of Asian companies don't take the gigantic
> pay amounts that US CEO's do.
>
> So, in principle, the Goodyears should be the most expensive, followed
> by the Firestone, then the Toyo stuff should be the cheapest.
>
> Yet, this is not the case. Pricing differers very little, in fact the
> Toyo
> stuff is a bit more expensive.
>
> Of course, if I compare a house brand (like Walmart's Goodyear Viva)
> that has a much lower UTQGS treadwear rating against the others, I see
> big differences. But, I would expect this to be so.
>
> Now, maybe the tire dealers are making up the differences on the mounting
> and balancing costs - but I kind of doubt it. The equipment they use is
> all expensive and they are paying a lot of employee salaries, I can't
> imagine
> they do anything more than break even on those costs.
>
> Anyway, the point is that there seems to be a wide difference in what the
> wholesale cost of the tire ought to be due to structural differences - the
> dealers I've looked at seem to have widely different purchasing power (
> Comparing Walmart against say Firestone dealers) and the tire
> manufacturers
> have widely different corporate structures and the manufacturing is also
> different. I cannot believe all these dealers are paying the same money
> for
> tires. But, they all seem to be selling them for the same money.
>
> What happened to competition? Seems to me there ought to be a big
> case here for an anti-trust price fixing lawsuit against the tire
> manufacturers.
> Anyone have any ideas?
>
> Ted
>

It is possible that all of the tires you shopped were made in the U.S.,
which would reduce the disparity in manufacturing cost.

Tires are a competitive business and a company whose products are priced
higher will have a tough time competing without a product attribute that a
consumer is willing to pay for, especially in the most common sizes like
205/70-15.
--

Ray O
(correct punctuation to reply)