Mack to Raise Prices on All Models

Facing a declining market for heavy-duty trucks, Mack Trucks announced on Friday that it will raise prices for all models in its product line by 2% beginning on July 1.

he company said in a statement the price increase’s purpose is to maintain profit-ability for its dealers, which have been hit hard by a combination of falling truck sales, high fuel prices, and the glut of used trucks already on the market.

“This is an extraordinary step, but one driven by extraordinary circumstances,” said Michel Gigou, Mack’s president and chief executive officer. “A combination of exter-nal and internal factors have rocked the entire trucking industry, and we’ve reached the point where pricing relief is essential.”

Mack, with 16.6% of the North American market, is second in market share only to Freightliner. But for the first four months of 2001, Mack’s heavy-duty truck sales are down 29 percent in a market that, overall, is down 40 percent. Mack has responded by reducing rates at its manufacturing plants and by cutting about 700 jobs by the end of July.

Gigou said Mack plans to make several product enhancements and introduce new products to shore up the position of the company and its network of dealers.

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