Mack Trucks Inc will institute a 2% price increase July 1, 2001, which will include all models in the Mack product line. The firm said the increase is intended to ensure that the Mack dealer network, which like the rest of the industry has experienced a severe drop in new truck sales, is able to maintain the profitability level necessary to deliver service and support to customers.
United States retail sales of heavy-duty vehicles fell 40% in the first four months of 2001, with Mack sales down 29% in the same period. In response to declining demand, Mack has announced a series of rate reductions at its manufacturing plants, and the elimination of about 700 positions by the end of July.
Michel Gigou, Mack president and chief executive officer, said the company also plans to make several product enhancements/introductions in June. He said these will involve both the vehicle and powertrain sides of Mack's business.