Volvo Trucks North America announced today that its model year 2002 VN, VHD and other new trucks will be subject to a 2% price increase effective July 1. This action follows a 2% increase that was announced with the introduction of Volvo’s 2002 vehicles on April 2.
“Truck manufacturers are not able to generate any returns on their investment at the pricing levels that have prevailed in the recent past,” said Karl-Erling Trogen, senior vp of AB Volvo, Volvo Trucks North America’s parent company. “Without pricing relief, we and our dealers will not be able to meet the investment demands placed on us to improve our products and services or meet ever-more restrictive and demanding government regulations in the areas of environmental sensitivity and highway safety.”
This price increase is taking place against a backdrop of declining new truck sales resulting from dramatic oversupply of used trucks. The used truck population is calculated by some industry experts to reach 300,000 units by 2003 in the NAFTA markets, Volvo said.