Michelin to Link Tire Prices to Cost of Oil

Michelin & Cie., the world’s second-biggest tire maker, said it will link the prices of car tires to the cost of oil, Bloomberg reported Friday.

“In response to soaring oil prices, Michelin has introduced a new tire-pricing system for customers in the automobile industry,” the company said in an e-mailed statement Friday, Bloomberg reported.

Paris-based Michelin said oil-based products account for about 60% of the cost of tires for passenger cars and light trucks, and that the recent steep rise in oil prices have affected the cost of its products, Bloomberg said.

In the new pricing schedule, Michelin will adjust its prices indexed to oil prices. The new schedule will take effect on April 1 and be applied worldwide, Bloomberg reported.