Dunlop warns California tire efficiency rules could raise consumer prices

Dunlop Tires' North America President and CEO Darren Thomas told a press conference that California's new replacement-tire efficiency program will raise manufacturing costs, which he expects to be passed on to drivers. The California Energy Commission approved regulations that will phase out tires that do not meet rolling-resistance standards, a measure intended to lower vehicle fuel consumption and emissions. Thomas said the average price of a tire could climb from about $81 to as much as $157, potentially adding more than $300 to the cost of a set of four tires.

"Will prices increase? You bet they’ll increase. It’s going to be a real issue, in terms of cost, it’s going to go up. By how much? We don’t know. Is there going to be fuel savings? In theory," Thomas said.

Thomas also questioned the safety and durability implications of the rules and suggested that proper tire inflation already offers fuel-efficiency benefits. He characterized the regulation as “overreaching” and warned it could disadvantage smaller manufacturers while favoring larger brands.

The state estimates the program could save drivers up to $1 billion a year in fuel costs, but industry groups such as the Tire Industry Association project significant price hikes. While some manufacturers, including Michelin and Bridgestone, have backed the standards, others like Goodyear and Dunlop have voiced opposition. California Governor Gavin Newsom defended the policy as a “good choice,” though critics have labeled it regulatory overreach.