Michelin Hikes Prices to Offset Raw Material Costs

French tire manufacturer Michelin on Wednesday said in a statement it would hike truck, earthmover and tractor tire prices in Europe to offset rising raw material costs.

Michelin said in February rising raw material costs would have a €1.5 billion ($2 billion) impact on operating income in 2011, but 75% of that was offset by price increases already announced or implemented.

Michelin said earthmover tire prices would rise up to 8% from June 1 in most European markets.

New Michelin brand truck tires would see a 7% price rise in Europe from July 1, the company said. Michelin Remix retreads would see an average of 7% price increases while other group brand tires would increase in price by 13% depending on the country.

Agricultural equipment tire prices will increase by an average of 6% for all group brands from July 1, Michelin added.