The following statement is attributable to Dee Kapur, president – Truck Group, International Truck and Engine Corporation:
Escalating raw material costs – including oil and essential production metals such as aluminum, steel and copper – are forcing International to add a commodities surcharge of $750 to $1,200 per truck (depending on model) in 2008. This surcharge will be in addition to any increases for model year and product line enhancements that will range up to three percent
Petrochemical, steel, copper and platinum products contribute significantly to the material value of a commercial truck. Since 2005, commodity prices have increased dramatically, with crude oil up 58 percent, steel up 30 percent and copper up approximately 100 percent. Additionally, platinum that is used in new 2007 emissions after-treatment devices has also risen sharply in recent months, further driving up our material costs.
Despite our best efforts to control costs and offset increases, global marketplace dynamics continue to increase our costs of steel, petrochemical, copper and platinum products. Since 2005 International has absorbed most of these material cost increases. We are now at a point where continuing this practice is no longer possible. It has become necessary for us to implement a surcharge on new trucks to partially offset these material cost increases.
A wholly owned subsidiary of Navistar International Corporation (Other OTC:NAVZ), International Truck and Engine Corporation is a leading producer of medium trucks, heavy trucks, severe service vehicles, MaxxForce brand diesel engines, parts and service. International and its affiliates sell their products, parts and services through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico and from more than 60 dealers in 90 countries throughout the world. Additional information is available at: www.navistar.com.
Jillane Kleinschmidt (630) 753-2462
Mark Johnson (630) 753-3518