Volvo Trucks North America announced that its 2002 Model Year VN, VHD and other new trucks will be subject to a 2 percent price increase effective July 1.

This action follows a 2 percent increase that was assessed concurrent with the introduction of Volvo's 2002 Model Year vehicles on April 2.
"Truck manufacturers are not able to generate any returns on their investment at the pricing levels that have prevailed in the recent past," said Karl-Erling Trogen, Senior Vice President of AB Volvo and temporary head of the North American operations.
"These problems extend backwards into the industry's supply chain, and outwards to dealer networks, who are suffering financially in their role as the primary service providers for customers." Trogen said. "Without pricing relief, we and our dealers will not be able to meet the investment demands placed on us to improve our products and services, as well as meet ever-more restrictive and demanding governmental regulations in the areas of environmental sensitivity and highway safety."
The announcement follows on the heels of one made by sister company Mack Trucks this week, which is also raising prices 2 percent.
New truck sales have dropped for all manufacturers, due in part to an oversupply of used trucks.
"Because of the advances in research, technology and manufacturing, the industry has elected to accept an increased trade cycle for the first owner," said Chris Patterson, executive vice president, sales and marketing for Volvo.
In response to this crisis, Volvo is curtailing shorter-term leases and repurchase agreements, which are the primary drivers of the used truck surplus.