“Historic, double-digit” increases in the prices of commodities used in vehicle construction are resulting in increased new vehicle purchase costs, according to the school bus manufacturer.
Blue Bird said has deterred some of the increased costs by employing efficient practices during production, according to a recent press release. The commodity surcharge of $1,400 effective on new orders placed after Aug. 4, 2011.
“Through implementing manufacturing efficiencies and by finding alternative lower-cost material sources, Blue Bird has been able to offset a substantial portion of the spiraling commodity cost increases. Like our competitors, however, we have been unable to offset fully the unparalleled double-digit percentage increases we have seen in recent months in steel, copper, rubber and precious metals, all of which are used extensively in our buses,” said Blue Bird President and CEO Phil Horlock.
Historically, rising commodity prices have contributed to an average increase in new vehicle purchases of 3 percent each year industry wide.