Most American heavy truck manufacturers say they are raising prices by about $900 to $1,600 per vehicle, and put the blame on steeply rising material costs. Price hikes and surcharges are going into effect this summer, according to Daimler Trucks North America, Navistar International, Mack Trucks and Volvo Truck North America.
Prices have soared for commodities essential to truck building, including petroleum, steel, aluminum, copper, and precious metals used in new emissions-compliant diesel engines, Navistar said in a statement. Since the beginning of 2008, steel has increased 100 percent, aluminum by 22 percent, platinum by 32 percent and copper by 23 percent. Crude oil prices have jumped by more than 40 percent. Some of the increases are due to demand for the materials by China and India, and by the weak U.S. dollar, experts have said.
"We are acutely aware of the financial constraints that many truck customers are currently facing and have been working diligently to absorb as much of these costs as possible," says James L. Hebe, Navistar’s senior vice president, North American dealer operations. "However, global commodity spikes are affecting all manufacturing and we finally, regretfully, must now share those additional costs with the customer."
Price increases for International trucks will vary by model, and will top out at $1,600, Hebe’s statement said. These follow price increases of $900 to $1,200 that Navistar announced in January.
Mack spokesman John Walsh said higher materials costs caused it to add a $900 surcharge in July. Volvo spokesman Jim McNamara said its surcharge is $950. Mack and Volvo are sister companies. Daimler, which includes Freightliner, Sterling and Western Star trucks, said it was also forced to raise prices, but spokesperson Amy Sills didn’t release specific numbers. Kenworth Truck and Peterbilt Motors, both owned by Paccar Inc., declined to comment on their pricing.
Truck prices are up by 20 percent since last year, according to Steve Williams, chairman and CEO of Maverick USA, a hauler of steel, building supplies and other flatbed-carried commodities. He testified before a congressional subcommittee a week before the Navistar announcement. More expensive trucks add to the list of woes -- principally less freight volume and higher fuel costs -- that the trucking industry is facing.
"Even with these modest increases," Hebe says, "customers are receiving full value with International trucks that provide superior fuel efficiency, overall performance and exceptional dealer service."
