Mack Trucks, Inc. announces that it will institute a 2% price increase on July 1, 2001. The increase will affect all models in the Mack product line.
The company said 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," said Michel Gigou, Mack president and chief executive officer. "A combination of external and internal factors have rocked the entire trucking industry, and we've reached the point where pricing relief is essential."
US retail sales of heavy-duty vehicles were down 40% in the first four months of 2001, with Mack sales down 29 percent in the same period. Gigou noted, however, that sales in Latin America—particularly in Venezuela—have been stronger than expected. Sales volume has increased by 94% in Venezuela.
Gigou said that Mack also plans to make several important product enhancements/introductions in June. He said the announcements will involve both the vehicle and powertrain sides of Mack's business, and are also intended to ensure the overall competitive position of the company and its dealer network.