What do car manufacturers pay per tire to the business they outsource them to?

Sorry - I have no up-to-date numbers . . . . . but can tell you that as it was failing in the 1960s, Studebaker contemplated coming-out with a simple, super-cheap car . . . the figured they could make the 6 cylinder engine for less than $100 and they allowed $4 each for tires !!!!!!! Back then we were probably paying about $40 for the same tires at retail.

The plan was for a mass-produced, injection molded plastic body of some sort, very plain and simple . . . . and would have cost something like $500 to build the complete car.It was butt-ugly so they decided no one would buy it - - - looked a lot like what we have to drive now !!!!!!

Lesson is that in the auto business it's all about quantity . . . . the big costs are in designing and production facilities/equipment . . . . . if they meet volume targets, the profits are enormous because they buy in quantity........if they plan and price to sell 150,000 of a model, they don't make anything until they sell # 150,001 - but then it's pure profit.

Also makes me wonder why you can buy a decent Korean-made car for $15,000 - - - - but my friendly tire dealer wants $650 for a set of Korean tires ?!?!?

To find out what tires any car maker uses just visit your local dealership and read the sidewalls. Once you read enough of them you will see that tires come in many models, sizes and load capacities so there isn't just one number.

Average retail markup on tires today is now under 10% so the bulk discounts carmakers get are not going to be huge.

All automakers buy tires for their vehicles wholesale in mass from several tire manufacturers. How much are the compared to retail pricing? Anywhere from 40% to 60% less.

Sure they get a good deal, but you can get better tires when it's time to replace them. Just shop around online in order to get a good deal.