Cost pressures force Schmitz Cargobull to hike prices by up to 5%

Multiple cost pressures have forced Schmitz Cargobull, a semi-trailer manufacturer, to increase all of its vehicle prices between 3-5%.

The German HGV specialist said high energy and increasing labour costs, as well as rising material costs had left it with no option but to increase prices.

It said steel and raw materials costs, which are traded in US dollars, have had a direct impact on production costs for the entire industry. 

Andreas Schmitz, Schmitz Cargobull AG chief executive, said: “The decision to pass on some of the rising material costs to our customers was not an easy one for us.

“The economic environment is difficult, not least due to the uncertainty on the corporate and consumer side, but also due to the challenging political landscape.

“However, no company can sell its products below production costs in the medium term.”

Price reductions could be passed on in the future

Schmitz said the business was left with no other option than to increase prices now in order to continue to maintain the product quality and service expected for fleet customers.

In an attempt to further soften the financial blow, Schmitz added on the record that should material prices fall contrary to expectations, fleets can expect price reductions to be passed back on to customers in the future.

Schmitz confirmed the business would continue to invest in research and development, as well as measures to increase productivity.

He added: “We want to do the right thing for our customers and not compromise on product quality.

"The aim is to reduce the total cost of ownership. For example, we continue to rely on galvanised vehicles that retain their value and offer the best insulation for temperature-controlled transport in our refrigerated boxes.

“Despite the higher purchase price, this pays off for the customer.”