CNH to Implement Surcharge of Five Percent

July 1, 2008 • CNH Global N.V., Burr Ridge, Ill., has announced that, in response to sharp and sustained increases in its costs for steel, energy, commodities, and transportation, it will implement an approximate 5-percent surcharge on the base price of all whole goods orders, including attachments and options of its Case Construction and New Holland Construction products.

The move follows price rises already introduced by many manufacturing companies worldwide. Steel prices soared 40 to 50 percent this year and, according to some forecasters, they could rise even higher as raw material costs continue to climb and global demand for steel and other commodities shows little signs of abating.

 

The company will continue to work to lower its operational costs in manufacturing through the highly productive efforts of its people, the development and use of state of the art technologies, the implementation in all industrial sites of the World Class Manufacturing production system and the relentless pursuit of excellence, said Harold Boyanovsky, CNH CEO.

 

Having implemented aggressive internal steps to manage these cost increases throughout our worldwide operations, the company has now announced specific price increases. These increases will be shown separately on the invoices as a surcharge. Boyanovsky said the global team will continue to work to improve the company's financial results and will take all necessary actions to protect the bottom line and to benefit employees, customers, dealers, and other stakeholders.