According to the CEO of Goodyear Tire, the company has sufficient supplies to mitigate the impending rubber shortage
Rich Kramer, CEO of Goodyear Tire & Rubber, told CNBC on Tuesday that he did not expect an impending rubber shortage that could hurt the tire maker.
Concerns about low supply of rubber made from rubber trees, mainly grown in Southeast Asia, is the most recent problem facing automakers already facing semiconductor shortages.
When asked if the company has enough material to make tires for cars, Kramer said, “The short answer is, we do it.”
“Basically, you see … either speculation or even China [putting] Rubber in stores, “said Kramer in an interview with Jim Cramer about” Mad Money “.
“It’s something that’s always out there, there’s a lot of speculation,” he added. “I can never say anything about anything that could happen to Southeast Asian rubber trees, but that really wasn’t a problem for us and the team did a great job.”
Goodyear’s shares rose 3% on Tuesday before closing at $ 18.28.