National Press Release

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.

SOURCE Rubber Manufacturers Association