Navistar boosts prices on International trucks

Inflated 2008 raw materials costs are blamed

by Tom Stundza -- Purchasing, 7/16/2008 10:59:00 AM

Higher prices for steel and other raw materials have caused Navistar International to increase prices on its International-brand trucks, effective immediately. Price increases will vary by model, topping at $1,600/truck.

Navistar says prices have soared in the past six months for crude oil, steel, aluminum, copper and the precious metals used in new emissions-compliant diesel engines.In a statement, the Warrenville, Ill., firm says that since the beginning of 2008, steel costs have has increased by 100%, aluminum by 22%, platinum by 32% and copper by 23%, while crude oil prices have jumped by more than 40%.

“We are acutely aware of the financial constraints that many truck customers are currently facing and have been working diligently to absorb as much of these costs as possible,” says James Hebe, Navistar's senior vice president of North American dealer operations, in the statement. “However, global commodity spikes are affecting all manufacturing, and we finally, regretfully, must now share those additional costs with the customer.”