National Press Release

Further softening anticipated in 2009

WASHINGTON, Dec. 1 /PRNewswire-USNewswire/ -- Tire shipments are projected to decline by more than six percent this year compared to 2007 with a further one percent decline predicted for 2009, according to the Rubber Manufacturers Association. Total tire shipments were below 300 million for the first time since 1997 when shipments were 290 million units.

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The decrease in tire shipments reflects the sharp downward revisions in the domestic economic conditions predicted for both the consumer and commercial sectors. Overall, the combined OE and replacement tire shipments for 2008 light vehicle and truck categories are anticipated to decrease by more than 20 million units to approximately 290 million total shipments compared to the 310 million total shipments in 2007.

A further slight decline of approximately 3 million total units to nearly 287 million total units is anticipated for 2009 as an economic rebound is unlikely to occur until the latter half of the year.

RMA's Tire Market Analysis Committee forecast for key categories and their respective segments for 2008 include:

    --  Original Equipment Passenger Tires:  This category is projected to
        decrease by more than 14 percent to approximately 39 million units in
        2008 as a result of continued decreases in domestic vehicle production. 
        A further decrease of approximately 3 percent is expected for 2009 owing
        to a delayed economic recovery and continued market share gains for
        light vehicle imports. Note that this projection does not account for
        any changes to the auto industry as a result of recent requests for
        federal financial assistance or potential for bankruptcy.
    --  Original Equipment Light Truck (LT) Tires:  Consumer demand for vehicles
        with higher fuel economy, a shift in vehicle fitments to P-Metric
        passenger tires and market share increases by import vehicle
        manufacturers have combined to significantly impact light truck vehicles
        fitted with LT tires.  As a result, RMA forecasts a decrease of
        approximately 34 percent in 2008 for a total of 2.9 million OE units,
        representing a 1.5 million unit decrease from 2007's total.  For
        2009, another 100,000 unit decrease is anticipated owing to the slow
        economic recovery and its impact on the commercial sectors that utilize
        light truck vehicles.
    --  Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck
        Tires: For 2008, this category is predicted to decrease by approximately
        16 percent to nearly 3.9 million units.  This decrease is attributed to
        the larger than anticipated economic slowdown in the commercial sector. 
        This will continue into 2009 and as a result, RMA forecasts a further
        decrease of approximately 8 percent or 300,000 units for a total of 3.6
        million units.  Given this protracted economic downturn, the expected
        pull-forward effect of truck sales into 2009 owing to anticipated
        changes in EPA regulations in 2010 has been discounted.
    --  Replacement Passenger Tire: The slowing economy, higher energy costs and
        declines in miles traveled contributed to this market's decline. 
        As a consequence, this category will realize a nearly 2.7 percent
        decrease, or approximately 5.5 million units, reaching a level of 198
        million units in 2008.  No growth is expected for 2009 due to the soft
        economic conditions.
    --  Replacement Light Truck Tire: The forecast for this market segment is a
        4.5 million unit decrease, or nearly 13 percent, to about 29 million
        units in 2008.  Although the number of vehicles for this market remains
        steady and largely represented by small commercial vehicles, declining
        economic conditions and fewer miles driven will contribute to a further
        projected 4 percent decline in replacement LT tire shipments in 2009.
    --  Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:
        RMA forecasts a decline to approximately 15.4 million units in 2008, a
        decrease of nearly 1.2 million units or 7.1 percent over 2007.  The
        market will realize another decrease of 300,000 units in 2009 as fewer
        goods will be transported as a result of the economic slowdown and
        protracted recovery.

The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include more than 80 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.

SOURCE Rubber Manufacturers Association