Tire industry loses grip as COVID-19 drags, Nokian bucks the U.S. trend

China 2536 Cons. Discr. - Autos 922 Coronavirus 385 European Union 632 Japan 507 South Korea 494 U.S. 4487

The global tire industry is starting to feel the drag from a coronavirus-driven downturn in automotive industry activity. Nokian Tyres has removed its earnings guidance while Pirelli has started a cost cutting program. The global tire industry, led by exports from China with 19.2% of the total and the U.S. with 16.5% of all imports, had grown modestly in 2018 but has seen a downturn in 2019. U.S. imports fell by 7.7% in Q4 and dropped by 6.7% in the first two months of 2020. Shipments from China fell by 46.1% year over year in January and February combined due to widespread tariffs while...

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