Goodyear Tire & Rubber CEO Rich Kramer revealed to CNBC Tuesday that he doesn’t expect an approaching deficiency in rubber to hurt the tire manufacturer.
Worries over a low supply of rubber, produced using rubber trees mostly grown in Southeast Asia, is the most recent issue confronting automakers previously battling with an absence of semiconductors.
At the point when inquired as to whether the organization has enough of the material to deliver tires for cars, Kramer said, “short answer is: We do.”
“Essentially what you see happening is … either speculation or it’s a lot of even China [putting] rubber in warehouses,” Kramer said in an interview with Jim Cramer on “Mad Money.”
“It’s something that’s always out there, a lot of speculation going on,” he added. “I can never say never about something that could happen to southeast Asian rubber trees, but that’s really not been a problem for us, and the team’s been managing it brilliantly.”
Shares of Goodyear rose 3% on Tuesday prior to shutting at $18.28.