Tire prices rising as rubber suppliers race to meet demand

Goodyear has warned consumers that they could be paying a lot more for tires in the near future.

Tires are costing more because demand for vehicles is out-pacing the ability of the world's rubber suppliers to produce enough raw materials. Goodyear CFO Darren Wells had gone on record stating that raw material costs could rise by as much as 35 percent over last year's prices in the third quarter. As a result, Goodyear - and rival tiremakers Cooper and Bridgestone - are expected to raise their prices by up to 6.5 percent in October.

"Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations," said Pongsak Kerdvongbundit, managing director of Phuket, Thailand-based Von Bundit Company, the largest natural-rubber producer and exporter in Thailand. "Global production will lag behind soaring demand for at least another two years."

Sales of rubber are increasing at their fastest rate most in six years, helped by what the International Monetary Fund has stated could be the fastest global economic growth since 2007, according to Bloomberg.