Goodyear CEO says company has supply to blunt looming rubber shortage

Goodyear Tire & Rubber CEO Rich Kramer informed CNBC Tuesday that he doesn’t count on a looming scarcity in rubber to harm the tire maker.

Considerations over a low offer of rubber, built from rubber trees mainly grown in Southeast Asia, is the latest dilemma experiencing automakers now battling with a absence of semiconductors.

When asked if the firm has ample of the materials to create tires for automobiles, Kramer mentioned, “small solution is: We do.”

“Essentially what you see occurring is … both speculation or it really is a ton of even China [putting] rubber in warehouses,” Kramer mentioned in an interview with Jim Cramer on “Mad Income.”

“It really is a thing that’s generally out there, a ton of speculation heading on,” he included. “I can never ever say never about something that could transpire to southeast Asian rubber trees, but that is really not been a problem for us, and the team’s been managing it brilliantly.”

Shares of Goodyear rose 3% on Tuesday just before closing at $18.28.