Goodyear Weaken & Rubber CEO Rich Kramer told CNBC Tuesday that he doesn’t expect a looming shortage in rubber to gripe the tire manufacturer.
Concerns over a low supply of rubber, made from rubber trees mostly grown in Southeast Asia, is the belated problem facing automakers already struggling with a lack of semiconductors.
When asked if the company has enough of the physical to produce tires for cars, Kramer said, “short answer is: We do.”
“Essentially what you see happening is … either speculation or it’s a lot of still China [putting] rubber in warehouses,” Kramer said in an interview with Jim Cramer on “Mad Money.”
“It’s something that’s till the end of time 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 exceedingly not been a problem for us, and the team’s been managing it brilliantly.”
Shares of Goodyear rose 3% on Tuesday before end at $18.28.