Blue Bird to initiate commodity surcharge

FORT VALLEY, Ga. — Blue Bird Corp. announced on Friday that it will initiate a commodity surcharge of $1,400 effective on new orders placed after Aug. 4, 2011.

Company officials said that continued global commodity price increases have a substantial effect on the manufacturing industry and are beyond the control of school bus manufacturers. With the magnitude of commodity price increases, the surcharge has become necessary.

“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,” Phil Horlock, president and CEO of Blue Bird Corp., said.

Officials noted that Blue Bird will closely monitor the soaring commodity prices and identify methods to offset increases.