Increasing raw material costs force trailer manufacturer to raise prices

Schmitz Cargobull will increase the prices of its commercial vehicles in the 2nd quarter of 2010. Raw material costs for aluminium, plastics and oils are once again increasing strongly, resulting in a disproportionate rise in manufacturing costs. During the crisis in 2009 Schmitz Cargobull AG largely exhausted the internal potential for increasing the effectiveness in the personnel and manufacturing areas. As a result no further options exist to compensate for the current material costs, which represent a defining cost factor.

Thus, depending on the vehicle type and specific materials utilised, the prices throughout Europe will be adjusted on the basis of the corresponding market in the coming months. In 2009 the situation in the transport sector - and thus in the closely connected commercial vehicle industry - was characterised by a high level of free transport capacities and thus an excess of vehicles as a result of the extreme decline in production in almost every industrial sector. The transport market is currently recovering and displays an increasing demand for new vehicles. The used vehicle stocks and leasing return stocks have already diminished drastically, especially in the temperature-controlled transport sector. Furthermore, it has become apparent that companies have once again begun to invest in regular replacements for aging vehicles. Many customers postponed these activities during the crisis in 2009 due to the uncertain economic forecasts.

(Source: Transport Weekly)