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Rubber scarcity creates new headache for beleaguered automakers


Rubber scarcity creates new headache for beleaguered automakers
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Last Updated: Apr 14, 2021, 10:09 AM IST
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Synopsis
The rubber industry is dominated by smallholders, making it difficult for producers to adjust quickly as demand changes, prices fluctuate or supply chain problems emerge.
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Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood.
Automakers struggling with pandemic-induced plant shutdowns and a global chip shortage are now confronting another supply chain headache: dwindling rubber supplies.
Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood. With the global supply already running short following stockpiling by China and a devastating leaf disease, rubber prices are on the rise and some U.S. auto suppliers are rushing to secure shipments before the ma ....

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