Release Date: 21 January 2010
Release ID: 4494
Despite signs of an improvement in market conditions, leading trailer manufacturer Schmitz Cargobull is warning that trailer prices are likely to rise across Europe in the coming months.
The forecast price increase is, say Schmitz Cargobull, the result of spiraling raw material costs.
Aluminium, plastics and oil prices have all surged in recent months and while Schmitz Cargobull has sought to absorb these increases by making cost efficiencies within its business, the company feels that a point has been reached where some price adjustment is inevitable.
It is no secret that the European commercial vehicle market suffered greatly in 2009 as a result of the dramatic downturn in the manufacturing sector.
The diminished market, coupled with the disproportionate rise in manufacturing costs that resulted from global raw material price increases, has meant trading conditions have been very difficult across the industry.
By making significant efficiencies in the way it runs its business, Schmitz Cargobull has managed to avoid the need to increase the cost of its products to its customers throughout the recession. However, the company feels it now has little choice but to review its pricing strategy in line with the rest of the industry.
Any increase in the list price of new Schmitz Cargobull curtainsided and refrigerated trailers is expected to come in to force in the second quarter of 2010.
There are signs that the transport market is currently recovering and demand for new vehicles is returning. 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 started to invest in regular replacements for ageing vehicles. Many customers postponed these activities during 2009 due to the uncertain economic forecasts.
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