Yokohama Off-Highway Tires: Continuing to absorb additional costs now, and in the future
- Costs of raw materials remain at a very high level
- Costs of freight rising dramatically
- YOHT will continue to absorb majority of costs
- minor portion of costs still needs to be passed on to business partners
The costs of raw materials remain very high and the costs of freight are rising dramatically in 2022 – this has forced Yokohama Off-Highway Tires (YOHT) to announce an additional price increase. Keeping the increases low – lower than industry average – has only been possible due to YOHT’s absorption of the majority of the costs. While YOHT will continue doing so in the future – it is unavoidable to pass a minor portion to its business partners.
“Freight costs are factors we cannot control, we are feeling the increase as well, especially with this third freight surcharge since March 2021 totaling 3250 euro per container. ” says Prabhakar Garimella, Head of East – Yokohama Off-Highway Tires Europe. However, “While we are forced to respond to the dynamics of the global market with a fifth increase since April last year, we at YOHT always think about our business partners and how to reduce their burden,” explains Koen van Gemert, Head of Finance – Europe, at YOHT.
“Being transparent and maintaining a realistic balance between market expectations and factors such as costs is very important to us. Closely communicating with our business partners, especially during though times, is something we value greatly at YOHT,” concludes Ole Baek – Head of North and France (YOHT).
YOHT has confirmed that the new prices will be applied from the 1st of April 2022 and are applicable to products from all YOHT plants.
