“This is an extraordinary step, but one driven by extraordinary circumstances,” said Mack president and CEO Michel Gigou. “A combination of external and internal factors have rocked the entire trucking industry, and we’ve reached the point where pricing relief is essential.”
U.S. retail sales of heavy-duty vehicles were down 40% in the first four months of 2001, with Mack sales down 29% in the same period.
In response to declining demand, Mack has also announced a series of rate reductions at its manufacturing plants, and the elimination of about 700 positions by the end of July.
Gigou said that Mack also plans to make several important product enhancements 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.
