Reading where North American automakers are boo-hooing over the shortage of tires for their production lines. And that they are seeing "double-digit price increases over last year," according to USA Today.
Well, boo-hoo, boo-hoo.
After decades of being second class citizens to the automakers, tire dealers now have company in the land of low/no fill rates. Time was car companies got whatever they wanted, whenever they wanted it, and tiremakers were so willing to push replacement work to the side for a few pennies profit from OE work. Dealers screamed that they weren’t getting tires, while the gleaming new cars and trucks all got fresh rubber.
In these days of underwhelming replacement market fill rates (I have heard as low as 35% in some quarters), it’s hard to have much pity for the car companies. At least some of the tire companies have learned a lesson and pushed themselves away from the OEM lunch counter and are now picking and choosing what they want to digest.
Even as tiremakers are piling on the hundreds of millions to boost capacity here and abroad, it’s likely both the OE and replacement side will continue seeing tire shortages for some time at least another year or so. If there is a silver lining and gosh knows I can’t believe I am saying this it’s our bummer economy.
If things were better and people were buying tires at pre-recession levels, the entire industry would be SOL right now. Even though the OE demand is rising faster than the replacement side, the numbers are smaller and a bit more manageable. When the replacement market hits its rebound stride, manufacturing capacity will become a major issue quite quickly.
For now, someone please pass a hanky to the nearest carmaker.
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For all of you non-Canucks out there, Friday is Canada Day, the day our friends to the north celebrate the creation of their fair land. Overshadowed by firecracker-engorged Americans on the Fourth of July, Canada Day is a hugely important holiday for Canadians.
In grand Canadian tradition and because they have a much greater sense of humor the folks there just sort of laugh the whole slight off. “Oh, it’s just those durn Americans,” they’d giggle. “Now pass the poutine.”
As for that sense of humour, noted author Rev. Robert Ripley lent his to a look at why Canada is worth worrying aboot:
“With Canada Day fast approaching, I have an urge to slip into a rant about the True North. After all, if there’s one thing we know about ourselves it is that we are not Americans. The last letter of the alphabet is zed not zee.
“But ranting isn’t very Canadian.
“Still, how can you not love a vast, decent country that combines Aboriginal love of the land, British law and order and French joie de vive?
“I love the loon and the beaver and will soon be trekking back to the Yukon with its breathtaking terrain, Klondike yore and solitude.
“I hoard my Canadian Tire money in the top dresser drawer.
“I love a land so aggressively conservative that our female impersonators are women.
“We are pragmatic to a fault. The Bible says, ‘Cast your bread upon the water and it will return to you one hundred fold.’ The Canadian says, ‘What am I going to do with a hundred loaves of wet bread?’ I cheer those who take a polar bear dip for charity even if they’re crazy.
“I get goose bumps when I see the red serge of the RCMP or listen to the jazz of Diana Krall or Oscar Peterson.
“I’m proud of Canadian innovations including Ski-Doos, Sea-Doos, zippers, insulin, the telephone, short wave radio, Coffee Crisp and Superman.
“As for sports, our football fields are bigger and we make it more challenging by having one less down. Baseball is Canadian. Lacrosse is Canadian. Hockey is Canadian. Basketball is Canadian. Even apple pie is Canadian.
“The only war the United States has lost was when they invaded Canada in 1812. Thomas Jefferson predicted it would be ‘a mere matter of marching.’ Boy was he wrong!
“The Hudson’s Bay Company once owned over 10% of Earth’s surface and is still around as the world’s oldest company even if it is now owned by an American.
“Robertson Davies, the bard from Thamesville, said that Canada is not a country one loves but a country one worries about. I worry about Canada constantly. We have forfeited our spiritual heritage and bankrupted ourselves with government handouts. Those who would sell water and welcome waste threaten our pristine property. Still, I love this land.
“When I spoke with a new Canadian, he said that taking the oath was one of the most moving moments of his life knowing he was shoulder to shoulder with people from all over the globe who had taken great risks to have what we have in Canada.
“I knew then, as I know now, that with all our differences of rights of language and land, Canada is worth fighting to preserve.
“After all, even foreigners speak fondly of our country.
“Loni Anderson said she loves Canada. It reminds her of Minnesota.”