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27 Per Cent. More on Original Tyres

2nd February 1951
Page 32
Page 32, 2nd February 1951 — 27 Per Cent. More on Original Tyres
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Which of the following most accurately describes the problem?

A NOTHER increase in the prices of f"1 new vehicles is foreshadowed by rising tyre costs. On January 1, the price of tyres distributed through the trade was raised by 20 per cent. Although vehicle manufacturers receiving supplies direct from the tyre makers were not affected by this increase, they were warned that a rise in cost was impending.

On January 25, one tyre manufacturer wrote to at least two vehicle makers as follows: "We regret to advise you that, owing to the further rises in price of raw materials, new tyre prices will apply from January 29. These are based on a 27i-per-cent. increase over prices at present in force."

The extent of this increase came as a surprise. Furthermore, another rise is expected before June this year.

One vehicle manufacturer has listed items of cost that have risen during the past few weeks. They include: Brakes, about 10 per cent.; steel, 5 per cent.; chains, wheels and timing gear. 5 per cent.; lubrication equip ment, 10 per cent.; garage equipment, 10 per cent.; bearings. about 10 per cent. on surcharges; and metal supplies, 4 per cent.

Evidence that British makers and operators are not alone in suffering from the incidence of rising costs comes from Canada. Prices of commercialvehicle tyres there have gone up by •-110 per cent. and heavy-duty tyres by 15 per cent. Stockpiling by the United States is blamed for these increases.

HULL LOSES 00,000 ON CO-ORDINATION?

AREVISION of its co-ordination arrangements with East Yorkshire Motor Services. Ltd.. is to be sought by Hull Transport Committee, because the committee claims that it is losing money at the rate of £20,000 a year under the present scheme.

The committee contemplates a loss of £81,575 on the working of motorbuses in the next financial year, and it is stated that had fares not been raised recently. the deficiency might have been £160,000.

The general manager of the undertaking is to be asked to supply a full report with recommendations for meeting the serious financial position in which his department finds itself.

One member of the transport committee has suggested that fares may have to be increased again.

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Organisations: Hull Transport Committee

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