Commodity prices that have as much as doubled in the past six months have led Navistar International Corp. to increase prices on International trucks, effective immediately.
Price increases will vary by model, topping out at $1,600 per truck, according to a Navistar press release.
Prices have soared for commodities essential to truck manufacturing, such as crude oil, steel, aluminum, copper, and precious metals used in new emissions-compliant diesel engines. According to the release, 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.
“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,” said James L. Hebe, senior vice president, North American Dealer Operations, Navistar. “However, global commodity spikes are affecting all manufacturing and we finally, regretfully, must now share those additional costs with the customer.”
Navistar is aggressively working to mitigate the higher commodity prices, as well as offset the negative impact of a weakened U.S. dollar, by attacking operational costs wherever possible and by negotiating greater efficiencies with suppliers.