Dunlop Tires has voiced strong opposition to California's newly approved regulations that will phase out the sale of replacement tires not meeting specific energy-efficiency standards. The company's North America President and CEO, Darren Thomas, warned at a press conference that the rules will lead to significant price increases for consumers and could disrupt the market.
The regulations, approved by the California Energy Commission, target a tire's "rolling resistance," which measures the energy required to keep a tire moving. Tires with lower rolling resistance are intended to improve fuel economy, leading to reduced gasoline or electricity consumption and better mileage for drivers. California officials estimate these savings could reach $1 billion annually.
However, Thomas argued that the cost of manufacturing will increase due to the new standards, with these costs inevitably passed on to consumers. "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," Thomas stated, while acknowledging that "in theory" fuel savings could occur. He also questioned the effectiveness of the regulations, suggesting that proper tire inflation by drivers can already improve fuel efficiency and that education might be a more effective approach than a broad mandate.
The new rules, set to take effect in 2029, could eliminate approximately 70% of replacement tires currently on the market, according to Dunlop. Thomas expressed concern that the regulations might disproportionately affect smaller manufacturers and could potentially lead to market monopolies. He also raised questions about whether the new standards would meet the diverse needs of all vehicles and driving conditions.
Other critics, including Republican Rep. James Gallagher, have denounced the policy as an instance of regulatory overreach. Opponents cite estimates from the Tire Industry Association suggesting that average tire prices could rise from around $81 to as much as $157 per tire under the new rules, potentially costing drivers hundreds of dollars more for a set of four.
Some critics also question whether the efficiency requirements might compromise tire performance, impacting factors like grip, durability, and resistance to flats. These concerns emerge as California drivers already face some of the highest transportation costs in the nation.
Governor Gavin Newsom has defended the regulations, referring to them as a "good choice." Major tire manufacturers are divided on the issue, with Michelin and Bridgestone supporting the regulations, while Goodyear and Dunlop oppose them. Mixed reactions to California's new tire efficiency regulations highlight a debate between environmental and economic objectives. The state aims to reduce emissions and save drivers money on fuel, but manufacturers like Dunlop are raising alarms about the potential financial burden on consumers and the impact on the tire industry.