LEHIGH VALLEY, Pa. — Mack Trucks says it will institute a two per cent price increase on July 1 that will cover all models in the Mack product line.
The company says the increase is intended to ensure that the Mack dealer network, which like the rest of the industry has experienced a severe drop in new truck sales, is able to maintain the profitability level necessary to deliver the quality service and support required by Mack customers.
“This is an extraordinary step, but one driven by extraordinary circumstances,” explains Mack president and chief executive officer Michel Gigou. “A combination of external and internal factors have rocked the entire trucking industry, and we’ve reached the point where pricing relief is essential.”
U.S. retail sales of heavy-duty vehicles were down 40 percent in the first four months of 2001, with Mack sales down 29 percent in the same period.
In response to declining demand, Mack has announced a series of reductions at its manufacturing plants, and the elimination of about 700 positions by the end of July.
Global deliveries from Mack through April totaled 8,812 vehicles, down 35 per cent from the 13,603 units delivered during the same period last year. In North America things are slightly worse with Mack delivering 8,256 versus 13,285 last year at this time — a drop of 38 per cent.