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May 2, 2022
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The Government ordered tire manufacturers to make production costs transparent

The Government ordered tire manufacturers to make production costs transparent

Feletti said that “a price acceleration is seen in final products that is not correlated with costs.”

The Commerce secretary Interior sent this Sunday a request for information to companies Guerrini, Bridgestone, Corral, FATE, Fortalein SA, Neumasur, Larocca and Pirellirequesting each of these firms to submit data on production, factory outlet prices, sales prices to distributors, as well as production and marketing costs.

In a statement, Internal Trade explained that the remission of “the production by type of tire in the last (12) months, the sale price at the factory outlet, by type of tire, in the last twelve (12) months was requested. , the selling price to distributors, by type of tire, for the last twelve (12) months, the suggested selling price to the public, by type of tire, for the last twelve (12) months and the evolution of the main costs of production and commercialization, by type of tire, of the last twelve (12) months”.

The official report indicated that “the requirement, framed in Supply Law No. 20,680, is made with the objective of evaluating and analyzing price increases in the sector and making the tire market in the country transparent, and is given in response to a previous request for information from these companies, which was not answered by them or was answered insufficiently and now the companies have 5 days to send the requested information”.

The Secretary of Internal Commerce, Robert Felettitogether with the Undersecretary of Policies for the Internal Market, Antonio Mezmezian, met last Thursday, April 28, with representatives of the sector to analyze the problem and demand explanations about the unjustified rise in tire prices.

Feletti expressed that “an acceleration of prices is seen in the final products that has no correlation with costs or with reasonable profit margins. We are not going to validate that a total dispersion of prices is generated, that it is not known what the correlation is with costs. That’s why we want to know what causes the dispersions and what causes the permanent upward pressure on tire prices”.

Finally, the Ministry of Commerce explained that “the price of tires is a very important issue, since its value affects the entire distribution chain, with land transport being the main mode of distribution of goods throughout the country.”



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