Ray Ashworth, DAF Truks managing director, says: "One of the biggest factors affecting truck pricing is the £/Euro rate. This has been made worse by some significant increases in commodity prices for steel, rubber and oil-based materials. Despite this we do not envisage a further structural price increase in the immediate future."
With so many factors affecting production costs, manufacturers are understandably hesitant to commit to future pricing. However, the position of Swedish manufacturers Scania and Volvo reflects the optimism and uncertainty throughout the industry.
Ian Mitchell, commercial truck director at Volvo Truck says: "We continue to see 2011 as a very challenging year. Once the effect of the increase in VAT has stabilised within consumer spending and the government's austerity measures have been fully understood, we are anticipating a stronger recovery in the second half of 2011."
Tim Pugh, business development director for Scania GB, says: "Scania looks, wherever possible, to mitigate this [price rises] through sophisticated procurement processes and focus on manufacturing efficiency. Inevitably, economic conditions always have an impact on whether prices will, or won't, be changed. Scania's approach remains to review this on a case by case basis."
Isuzu, however, has already implemented a small percentage increase on its N-Series models and the company is predicting further increases as a result of rising costs.
Keith Child, marketing director for Isuzu Truck UK says: "Japan has seen rises in production costs and they are trying to pass them on to us, which in turn means that we will unfortunately have to pass some of the increase on to our customers. N-Series prices increased in November 2010 by between 4% to 5% and we hope that these prices will hold now for the entirety of 2011.
The reality is that a customer might have to absorb a 1% or 2% increase. Our F-Series range will inevitably go up too, and for new production during 2011 we can expect an increase."
Provided by RoadTransport.com
The reality is that a customer might have to absorb a 1% or 2% increase. Our F-Series range will inevitably go up too, and for new production during 2011 we can expect an increase."
Provided by RoadTransport.com
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