Starting June 1 customers ordering ArvinMeritor products could face a new commodity surcharge.
In ArvinMeritor’s second-quarter earnings report issued on April 29, the company stated that the unprecedented volatility in the commodity markets – including a global shortage of scrap steel; a rapid escalation in the price of critical raw materials such as iron ore, coking coal and metal alloys; and higher fuel and energy costs – would require it to take recovery actions to mitigate a significant impact to the company’s financial results.
“As a result of the sudden and extraordinary surges in the price of steel, energy and other commodities, we are implementing a monthly review and adjustment process on all products,” said Chip McClure, chairman, CEO and president of ArvinMeritor, in a company press release. “We have a portfolio of complex products that require varying levels of commodities. We plan to adjust the surcharge as appropriate for each product line.”