WARRENVILLE, Ill. — IC Corporation will increase new bus prices for 2008 by between $2,500 and $3,000 in response to rising commodity prices, according to John McKinney, vice president and general manager.
“High oil prices negatively impact rubber and plastics prices,” said McKinney. “With metals in short supply and a weak U.S. dollar boosting prices from overseas suppliers, we have no other choice but to raise prices.”
Since 2005, prices for several production metals have increased significantly, with palladium and copper up approximately 70 percent. Steel has increased by between 16 and 39 percent, aluminum by 24 percent and stainless steel by 29 percent. Platinum used in 2007 emissions aftertreatment devices is also up in recent months, further driving up material costs. Additionally, crude oil prices have jumped by 49 percent.
“We don’t have ultimate control over the increase in worldwide commodity costs, but we can control our manufacturing process,” McKinney explained. “We continue making improvements to be as efficient as possible in our production facilities in Conway, Ark., and Tulsa, Okla., so that we don’t pass the full effect of the commodity increases on to our customers.”
The nation’s largest integrated manufacturer of school buses, IC Corporation is a wholly owned affiliate of Navistar International Corp.