Goodyear Tire & Rubber CEO Rich Kramer advised CNBC Tuesday that he does not anticipate a looming shortage in rubber to damage the tire producer.
Concerns over a low supply of rubber, created from rubber timber largely grown in Southeast Asia, is the newest drawback dealing with automakers already scuffling with a scarcity of semiconductors.
When requested if the company has sufficient of the fabric to produce tires for automobiles, Kramer mentioned, “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 mentioned 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 earlier than closing at $18.28.