Chinese Tire Surges and the U.S. Auto Industry

Posted by scapozzola on 04/23/2009

Earlier this week, the United Steelworkers (USW) filed a section 421 trade case against Chinese tire manufacturers. The case notes that thousands of U.S. automotive jobs have been lost over the past four years due to a surge of subsidized car and truck tires from China. Section 421 of U.S. trade law allows relief from rapid increases in imports that cause “market disruption” to a domestic industry. In this instance, the petition asks the Obama administration to place import restrictions on Chinese tires for the next three years. The U.S. automotive industry is greatly hurting right now, with GM initiating a 15-plant shutdown for nine weeks this summer in order to cut costs. The section 421 filing joins other recent U.S. trade cases against Chinese manufacturers, including a petition by U.S. steelmakers against unfairly dumped steel pipe from China. The USW has provided some specifics of the damage posed by surging Chinese tires: -46 million Chinese tires entered the U.S. market in 2008 annually, with a value of more than $1.7 billion. Production of Chinese tires is aided by illegal currency manipulation and other subsidies. -Documents submitted in the section 421 case show imports of consumer tires from China increased from 2004 to 2008 by 215 percent in volume and 295 percent by value. Imports have nearly tripled by volume during the surge period, while domestic production of consumer tires have declined by more than 25 percent. -U.S. consumer tire-producing states include: Alabama, Arkansas, Georgia, Illinois, Indiana, Kansas, Mississippi, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee and Virginia. -Nearly 7,000 U.S. tire workers have been affected by six factory shutdowns of consumer tires since 2004. The latest plant closing was announced last week by Michelin North America of the BF Goodrich unit in Opelika, Al., involving 1,000 workers. Other shutdown tire plants during 2004-08 include Continental Tire, Bridgestone/Firestone, and Goodyear. -The section 421 petition requests an import quota on China of 21 million consumer tires used on passenger cars, light trucks, minivans and sport utility vehicles per year. The quota would return China tire imports to a 2005 level and then increase five percent per year over a three-year period. This could enable U.S. tire makers to regain lost market share, increase production and sales, and allow investment in capital equipment to better compete in the long term.

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[...] Originally Posted by RRonning1984 Is there any reason to go bias ply over radial! Bias tires have been around for a long time..its old technology. Myself ...I am stubborn enough that I will do whatever it takes to NOT buy chinese tire products...(I am pi$$ed at how they have been allowed to knock off usa manufacturers ,one by one) Manufacture This » Blog Archive » Chinese Tire Surges and the U.S. Auto Industry [...]

[...] Manufacture This » Blog

[...] Manufacture This » Blog Archive » Chinese Tire Surges and the U.S. … [...]

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