WARRENVILLE, Ill. (July 9, 2008) Commodity prices that have as much as doubled in the past six months have led Navistar International Corporation (NYSE: NAV) to increase prices on International trucks, effective immediately.
Price increases will vary by model, topping at $1,600 per truck.
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. 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.
“Even with these modest increases, customers are receiving full value with International trucks that provide superior fuel efficiency, overall performance and exceptional dealer service,” said Hebe.
Navistar International Corporation (NYSE: NAV) is a holding company whose wholly owned subsidiaries produce International® brand commercial and military trucks, MaxxForce™ brand diesel engines, IC brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Additional information is available at www.Navistar.com.