IFT boss warns of rising truck truck prices iii •
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The days of heavy discounting on new trucks could be numbered as truck manufacturers struggle to absorb recent increases in raw materials and to conform with tough environmental legislation.
At Iveco Ford's annual "State of the Nation" presentation last week, IFT boss Alan Fox warned: "Operators will have to pay more for their trucks. The increased costs have to be passed on to customers as manufacturers can't be expected to absorb them, Appropriate changes in legislation will also have to be paid for."
Steel prices have recently risen by an average of 12% with specialist steels coming in even higher. Truck makers are also having problems getting tyres, roller bearings and alloy wheels. And the continued strength of the US market is causing shortages for European truck makers.
Fox delivered a withering attack on suppliers which have recently increased their prices: "What kind of world is it when suddenly there are lead times of up to eight months and we're now facing 8-10% price increases? The debate hasn't been answered."