CNH Global last week said it will implement a surcharge of about 5 percent across the board on the base price of all whole goods orders, including attachments and options of its Case Construction, New Holland Construction, Case IH Agriculture, New Holland Agriculture and Steyr products. The surcharge comes in response to sharp and sustained increases in its costs for steel, energy, commodities and transportation, and follows price jumps already introduced by many worldwide manufacturers.
Steel prices have increased 40 to 50 percent already this year, CNH said, and, according to some forecasters, could rise higher as raw material costs continue to climb and global demand for steel and other commodities continues to increase.
“CNH will continue to work to lower our operation costs in manufacturing our leading products through the highly productive efforts of our people, the development and use of state-of-the-art technologies,” said CNH CEO Harold Boyanovsky. “Having implemented aggressive internal steps to manage these cost increases throughout our worldwide operations, we have now announced specific price increases. These increases will be shown separately on the invoices as a surcharge. Our global team has worked and will continue to work hard to improve the company’s financial results, and we have the responsibility to take all necessary actions to protect our bottom line and to benefit our employees, customers, dealers and other stakeholders.”
