Goodyear was upgraded earlier this week on the notion they will more than offset a loss from lower auto sales with higher tire *replacement* sales. We all keep our old cars for longer. $GT - ThreadSky

carlquintanilla.bsky.social • 22 days ago

Goodyear was upgraded earlier this week on the notion they will more than offset a loss from lower auto sales with higher tire *replacement* sales.

We all keep our old cars for longer.

$GT

Comments

bmdrew73.bsky.social•22 days ago

Phones, too.

s2root.bsky.social•22 days ago

When people can't afford to buy new tires, they don't.

Better to invest in ambulance manufacturers.

colemarie.bsky.social•22 days ago

Hospital closures... might as well invest in caskets.

s2root.bsky.social•22 days ago

🤣 Shovels for digging the holes? How far can we take this?

colemarie.bsky.social•22 days ago

All the way, baby!

blueskybound.bsky.social•22 days ago

This is where the rubber meets the road I guess.

nekodad.bsky.social•21 days ago

Not so fast GoodYear. We ridin' on baldies longer too

voxshelby.bsky.social•22 days ago

Doesn’t a big chunk of their raw materials get imported?

tattoojeff.bsky.social•21 days ago

Aren’t you folks the same people who backed Obamas cash for clunkers- removing an entire generation of used cars from the automotive circulation? Asking for my mechanic buddies who still see the results of that fiasco

someguy192.bsky.social•22 days ago

This makes zero sense, like do the people that come up with this stuff not realize new cars come with tires?

waynerubert.bsky.social•21 days ago

Funny how the invisible hand works....

3rdrei.bsky.social•22 days ago

One of the most accurate assessments I have seen lately. Even in apocalypse movies, the horse or people drawn carts had rubber tires.

calleigh13.bsky.social•22 days ago

I worked in a GM parts plant for a while. A “rubber type” hose came from Africa. Whatever it was made from had an extremely bad smell. I wonder about the workers that made it and about their health. So many countries don’t have OSHA to protect them. 😳 Soon we won’t either.

jodyv.bsky.social•22 days ago

We use organic peroxide to make rubber right here in the US. Smells awful, makes your nose run and eyes water. 28 years in that hell hole 😵‍💫

calleigh13.bsky.social•22 days ago

Maybe that’s what it was. Worst smelling thing that ever came out of a package. (Parts can in bulk and parts plant sorted them to send to dealers who needed that part.)

trotzkyicepick.bsky.social•19 days ago

This is ignoring that GT makes about 50% of their sales overseas, and that American brands are toxic now thanks to the orange Jesus.

airbare.bsky.social•22 days ago

Let's think about that just a little more. Guessing at least 70% of tires by weight are natural rubber, which does not grow in this country. So their primary material is being taxed, so the tire prices will increase.
Some people who can't afford new cars also won't be able to afford new tires.

airbare.bsky.social•22 days ago

Or maybe they won't buy winter/mud tires seasonally. Maybe fewer people will lift their trucks & get the really big tires at $1k a pop.

I don't see any scenario where the value of a tire company increased 12%

blur911.bsky.social•22 days ago

It's more like 30% natural rubber, but I think bead wire and steel for belts is usually imported.

richmahogany.bsky.social•22 days ago

I remarked yesterday that watch repairs will increase, except those are essentially a loss-leader for watch companies. Not how a business thrives, or grows in any way.

fatbaldboomer.bsky.social•22 days ago

Autozone

jaxbbax.bsky.social•22 days ago

Joe Bob's & Rodrigo's Tire Repair should go public.

Also, California is about to have mass tire & innards theft akin to its catalytic converter thefts.

Good times eh @gavinnewsom.bsky.social ?

jambalayaval.bsky.social•22 days ago

Yeah, my 10-year-old car is going to have to be my 15-year-old car because I see no way of buying anything new in the next four years. TFG & Co. are trying to take away my social security and Medicare, and my pension is in the toilet. So it's the cheap cat food – and an old car – for me.

ragouri.bsky.social•22 days ago

Bunch of poor folks unable to afford new cars so they drive clunkers until they fall apart?

USA well on its way to becoming... Cuba!

Make America Cuba, alright!! #MACA

clear-mirror.bsky.social•22 days ago

Give the Cubans credit. They’re managing to keep 57 Chevys running.

ragouri.bsky.social•22 days ago

They maintain lots and lots of Ladas. Again, just like America is about to do!

livlaughlov.bsky.social•22 days ago

окей

clear-mirror.bsky.social•22 days ago

Da!

physicsanddata.bsky.social•22 days ago

Seems unlikely:
If there are fewer new cars on the road, there are fewer cars on the road.

That is: the old cars are/were always there (so no increase there, just fewer used-cars on market)
The sales of tires for old-or-used cars will not increase,
more likely (poorer) people run old tires more.

stanzman.bsky.social•22 days ago

Tires are a petroleum product. Somebody knows something

0jeff0.bsky.social•22 days ago

Auto parts stocks would be good picks as well.

jc2962.bsky.social•22 days ago

This is more foolishness. When people stop purchasing cars they also put less miles on their old ones. Tire sales in a recession will not keep up. People who lose their jobs don’t drive to work. I know is obvious but… the game isn’t over until it’s over!!! Someone smart said that

timelord7.bsky.social•22 days ago

North Cuba?

twoifbyland.bsky.social•22 days ago

Implying that anyone would just buy a new car as opposed to replacing 4 tires seems to point to a grander society problem

kusydog.bsky.social•22 days ago

We won't be able to buy premium tires

rocketcheddar.bsky.social•22 days ago

This doesn’t make much sense. Are they saying people will drive more? Tires only degrade with higher mileage, not if the car is sitting in the driveway because people can’t afford gas.

chrischaten.bsky.social•22 days ago

They are a bit domestically weighted vs competitive brands like Michelin & Bridgestone

donnavishio.bsky.social•22 days ago

Don’t matter if you have an old car or not, if you can’t afford gas to run it

denniscolehill.bsky.social•22 days ago

But... We have no rubber... Don't those penguins grow them in their highly tariffed island?

lexie1179.bsky.social•22 days ago

People will drive their tires until they pop.

toninparsons.bsky.social•22 days ago

More toxic landfill yay 🥳

euler007.bsky.social•22 days ago

That stock is trading at less than a third of what it was eight years ago. Basically at pre-covid prices. Not much of a bellweather.

swgeneralmills.bsky.social•22 days ago

Their "bull" case is average Americans are worse off.

Trump is President....so it tracks.

tdm15.bsky.social•22 days ago

got some used vehicles for sale. hit me up!

ronlaneinok.bsky.social•22 days ago

I see it as more of a wash at best. There will be fewer new cars. The total number of vehicles needing tires won't meaningfully increase simply bc people keep their old cars. They may actually drive the treads off to postpone tire buying.

christylgo.bsky.social•22 days ago

That's hilarious because we couldn't afford tires before the tariffs. Well all just be driving on rims now

ayeronnie.bsky.social•22 days ago

Dang it! I am late again.

furore.bsky.social•22 days ago

When GT and DG are up...

itstygrey.bsky.social•22 days ago

Gotta push back on DG a little. I live in a semi rural area in Georgia and have about 6 DG’s in a 10 mile radius. Nothing they have is cheaper than a Grocery store or department store. They also have a shit ton of imported product. Probably like 98%. I don’t understand this one.

furore.bsky.social•22 days ago

Relatively low China exposure, I've been told. But I'm far from an expert of the industry, more like looking at how it typically plays out in these cases.

itstygrey.bsky.social•22 days ago

That’s what I keep hearing as well but just speaking as someone that shops there frequently out of convenience, you wouldn’t think so if you saw the junk they sell. Think it’s just been down for a while so maybe a safe harbor temporarily. Guess we will have to wait and see.

furore.bsky.social•22 days ago

I mean, gut feeling, I'd agree with you

nancysknotsandlace.bsky.social•21 days ago

Buy Michelin

nekodad.bsky.social•21 days ago

I buy Nokian. The Finns know bad winter weather better than the French.

lascienza.bsky.social•21 days ago

Not sure who controls car warranties but I would not be investing there.

djgiantrobot.bsky.social•22 days ago

That didn't take long!

library-lisa.bsky.social•22 days ago

I will keep driving my 24 year old car!

angrypersiangardnr.bsky.social•21 days ago

So I’m keeping my 1994 Toyota truck longer. 31 years is still young in truck years, right?

itstygrey.bsky.social•22 days ago

The tires on new Trucks and Cars are usually part of a very cheap package deal from Auto Makers and Tire Manufacturers, so the more they can sell to end users they better their margins will be as well. That kinda makes sense

retainingwater.bsky.social•22 days ago

Except they can’t get rubber trees to grow in Detroit

rehunter145.bsky.social•22 days ago

I don't see how this makes sense tire wear is about miles driven not how new the car is you're driving them on is it. Presumably with less trade and less employed people a lot less miles are going to be driven

plgbf.bsky.social•22 days ago

Exactly!

ralucaharagus.bsky.social•22 days ago

This is higher level math, you don't need to question it. It has epsilon in the formula, like the tariffs.

carbonriver.bsky.social•22 days ago

And the clear logic that when you trade in a car the tires magically get better for the new owner. Tires only need replacing if you keep the car. And new cars have tires on them when the Stork delivers them to their new parents, so no impact if those sales decline. Irrefutable tire math facts here.

snickersthecat.bsky.social•22 days ago

matunos.bsky.social•22 days ago

Hmm when people buy new cars, they're buying new tires with those new cars, regardless of the condition of the tires on their old cars. When people don't buy new cars, my guess is they delay replacing their old tires until absolutely necessary.

infynty.bsky.social•22 days ago

Cool. We’ll be just like Cuba recycling our cars for decades. This is going to be great.

clear-mirror.bsky.social•22 days ago

Except when people are unemployed, they don’t drive as far or as often

yvettejr718.bsky.social•22 days ago

People are going to have to take out mortgages to buy a new car soon. They’re going to become so prohibitively expensive that they’ll either have to do that or take out 15 year car payment loan. Most people can’t afford a $1200 a month car loan.

nicholasabrown.bsky.social•22 days ago

My family owns a tire business. We are a certified dealer of Goodyear, Dunlop, and Kelly Tires, and we stock tires for cars, trucks, SUVs, vans, and more. We are the best tire and auto repair company, IMO.

Business from our viewpoint: near all-time highs.

Revenue is up
Foot traffic is up.

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