Ed White wrote:
<...>

> Faulty logic here. For one thing, Japanese manufacturing costs are not lower
> than US manufacturing costs. Another problem is shipping - tires are bulky
> and not cheap to ship. The impact of CEO salaries on individual tire prices
> is tiny. Goodyear's CEO is wildly over compensated (nearly $7 million last
> year), but that is only about $0.03 per tire (3 CENTS per tire - Goodyear
> sold over 226 million tires worldwide last year).

Goodyear also makes automotive belts (e.g., fan and serpentine belts),
hoses (both for cars such as radiator hose and garden hoses plus pipes
and other industrial hose/pipe products), conveyor belts, the rubber
tracks on bulldozers, automatic transmission parts, products for the
military and aerospace, air springs (I guess for big trucks) and other
rubber products.

<...>

> Clearly you are working off faulty data. In fact, there are large
> differences in prices for tires with similar predicted tread life. Given
> that tire manufacturing is a mature industry and all companies make tires
> essentially the same way with similar costs for raw materials, I am
> surprised there is as much difference in prices as there is.

However, different makers may use different types of rubber and other
synthetic compounds, explaining some of the differences. And different
manufacturing techniques may require special equipment. Both of these
will affect the cost that it takes to produce a tire.

> I think most of
> the difference in prices is based on marketing ability more than differences
> in manufacturing costs.

I agree.

Jeff

> Ed
>
>