One of the largest tire producers in the world has torn into Gavin Newsom’s new tire regulations and warned they will cause price increases and destroy the market.
At a length press conference Monday, Dunlop Tires’ North America President and CEO Darren Thomas said the cost of manufacturing will spike — which will be passed on to customers.
He also raised concerns about safety, durability and environmental hazards sparked by the governor’s new rules.
The California Energy Commission last week approved plansthat will phase out the sale of replacement tiresthat do not meet energy-efficiency standards — potentially wiping out 70% of all those on the market.
The regulations target a tire’s “rolling resistance,” or how much energy it takes to keep a tire moving down the road.
Lower resistance means cars use less gas or electricity and get better mileage, which Democrats have argued will help make driving more affordable.
But Thomas said: “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. By how much? We don’t know. Is there going to be fuel savings? In theory.”
Dunlop Tire executives said California drivers can already save money and improve tire performance simply by keeping their tires properly inflated.
Thomas continued: “Generally, when you attempt to regulate something, you don’t understand, or don’t care much about, you create bad policy. And that’s probably what we have here.”
The drastic move is being justified on two fronts: reducing emissions and helping Californians save money on gas — potentially up to $1 billion a year, according to California Energy Commission estimates.
Thomas noted the impact could be felt more by drivers than larger brands like his. “We can all do it tomorrow,” he said. “Will it accomplish the needs you have for your vehicle and your driving use? The answer is no.”
He said the standard could reduce carbon emissions but called the regulation “overreaching.” He argued proper tire inflation can already improve fuel efficiency and suggested education may be more effective than a broad mandate.
He also warned the rules could disadvantage smaller manufacturers and potentially create monopolies.
Newsom has defended the new replacement tire efficiency regulations, calling them a “good choice.” The Post has reached out to his office for comment on Dunlop’s concerns.
Major tire manufacturers are divided over California’s new Replacement Tire Efficiency Program (RTEP), with Michelin and Bridgestone supporting the regulations, while Goodyear and Dunlop oppose them.
But lawmakers and political figures on the other side of the aisle have blasted the rules as another example of California’s regulatory overreach.
Former Los Angeles mayoral candidate Spencer Pratt called the regulations a “scam” that could ultimately drive up costs for drivers.
Republican Rep. James Gallagher of California also slammed the policy, arguing that the state is using high gas prices to justify regulations that could make tires more expensive.
Critics have pointed to estimates from the Tire Industry Association that average tire prices could rise from about $81 to as much as $157 under the new rules. For a driver replacing all four tires, that could mean hundreds of dollars in additional costs.
Some opponents have also questioned whether the efficiency requirements could affect tire performance, including grip, durability and resistance to flats.
The concerns come as California drivers already face some of the nation’s highest transportation cost which add a dent to the state’s 30 million drivers.
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