Truck maker Volvo expects to raise prices next year to offset a weaker dollar and higher raw materials costs, its chief executive told Reuters.
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The news agency noted that Volvo has profited from increasing demand for heavy trucks on both sides of the Atlantic this year in an otherwise lacklustre market, and has so far been able to pass on rising raw material costs to customers.
“I think we will need to raise prices in 2005 like we did in 2004,” CEO Leif Johansson reportedly said while at a conference. “For trucks I think the price increase will be at the same pace as in 2004, while for [Volvo Construction Equipment] it will be a bit more.”
It was not immediately known how much Volvo raised prices this year, Reuters said, adding that a weaker dollar, down more than 10% against the Swedish crown since mid July, threatens Volvo’s earnings in North America, its second biggest market, when translated into crowns.
According to the report, Johansson also said efforts to raise production by about 10% over the next few months to meet demand were proceeding as planned, despite shortages at some suppliers.
