The German semi-trailer specialist has decided to raise prices due to high energy costs, rising labour expenses, and increasing material prices.
According to the manufacturer, the prices of steel and raw materials, which are quoted in U.S. dollars, have a direct impact on production costs across the industry.
“The decision to pass on part of the rising material costs to our customers was not an easy one for us. The economic situation is challenging, not only due to uncertainty among businesses and consumers but also because of the difficult political climate. In the medium term, no company can sell its products below production costs,” said Andreas Schmitz, CEO of Schmitz Cargobull AG.
Price reductions possible in the future
The company stated that the price increase was necessary to maintain the quality of products and services that fleet customers expect. However, it also noted that if material prices fall unexpectedly, fleet customers can anticipate price reductions.
Despite the economic pressure caused by rising costs, Schmitz Cargobull confirmed that it will continue investing in research and development as well as in initiatives to improve productivity.
“Our goal is to reduce the total cost of ownership. For example, we continue to rely on galvanised vehicles, which retain their value and provide the best insulation for temperature-controlled transport,” explained Andreas Schmitz.