2009 Tire Shipments to Post Thirteen Percent Decline

Nearly 6 percent growth anticipated for 2010

WASHINGTON, Nov. 2 /PRNewswire-USNewswire/ -- Tire shipments are projected to drop by approximately 13 percent in 2009 primarily due to sharp decreases in demand for original equipment manufacturer (OEM) passenger and commercial truck tires, according to the Rubber Manufacturers Association.

Total 2009 tire shipments are projected to decline approximately 36 million units to 246 million units. This decrease reflects the difficult economic environment for automotive manufacturers over the past year, continued low consumer confidence and high unemployment. Tire shipments peaked at 321 million in 2000.

Vehicle miles traveled is on par with 2008 levels as the domestic economic conditions for both the consumer and commercial sectors appears to have stabilized and are poised for a rebound in 2010. As a result, the tire industry is expected to realize a nearly 6 percent growth in 2010 reaching the 260 million unit level.

RMA's Tire Market Analysis Committee forecast for key categories and their respective segments for 2009 include:

  --  Original Equipment (OE) Passenger Tires:  Large decreases in domestic
      vehicle production due to plant shutdowns will result in a nearly 43
      percent decrease in 2009 OE tire shipments to approximately 22 million
      units.  The federal government's "cash for clunkers" program pulled
      forward future years' vehicle sales into 2009, which mitigated an even
      steeper drop in OE tire shipments.  An improving economy and a rebound
      in vehicle production and sales are anticipated in 2010 resulting in a
      nearly 8 million unit increase projected for OE tire shipments.  This
      projection does not account for any possible changes to the auto
      industry from further federal intervention or consumer incentive
      programs.
  --  Original Equipment Light Truck (LT) Tires:  This category will
      experience an approximate 9 percent decrease, or 300,000 units, in
      2009 to nearly 2.7 million units due to slower economic conditions and
      its impact on the commercial sectors which utilize light truck
      vehicles.  Little or no growth is anticipated for 2010 as domestic
      vehicle production is projected to remain weak.
  --  Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck
      Tires: A nearly 41 percent decline to approximately 2.3 million units
      is anticipated for 2009 -- a decrease of approximately 1.6 million
      units.  The economic rebound anticipated for 2010 along with pent up
      demand for vehicles is projected to result in a net gain of
      approximately 350,000 units.
  --  Replacement Passenger Tire: Shipments will decrease approximately 12
      million units to nearly 180 million units for an approximate 6 percent
      decline.  Growth is anticipated to resume in 2010 with the replacement
      sector estimated to increase by approximately 4 million units, or
      about 3 percent, as economic conditions improve. Non-RMA imports
      accelerated in July and August prior to imposition of a three year
      Chinese import tariff on Sept. 26th.  These imports are anticipated to
      drop off dramatically in October and remain at depressed levels
      through the three year period.
  --  Replacement Light Truck Tire: This segment represents a core group of
      consumers and the small commercial vehicle market -- mainly "class 3"
      trucks.  The onset of the economic recovery has limited the impact of
      the decline in LT tire shipments to nearly 3 million units, or 11
      percent, for a total of approximately 26 million units.  Little or no
      increase is anticipated in 2010 in keeping with commercial economic
      forecasts and the impact of the Chinese tire tariff.

  --  Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: 
      The market is anticipated to decrease by approximately 2.3 million
      units in 2009 to nearly 12.6 million units.  Given the uneven economic
      rebound forecast for 2010, this market is expected to increase by less
      than 1 million units to nearly 13 million units.

The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include more than 60 companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. All RMA press releases are available at www.rma.org.

RMA's Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.