The continued high prices for commodities like steel, aluminum and copper – metals which are essential to production – are forcing an estimated 2.5 percent to 3.5 percent increase for new IC Bus purchases effective Nov. 1, 2008, according to John McKinney, vice president and general manager of IC Bus.
“Commodity costs continue to trend upward and, with no expected price reversal foreseen, we have no other choice but to raise prices,” McKinney said
Steel and its derivatives account for more than 50 percent of the material value of a bus. Steel prices have increased 150 percent since January 2008. Palladium and copper products, which make up almost 10 percent of the buses’ material value, have gone up 70 percent in price since 2005. Platinum, used in 2007 emissions aftertreatment devices, is also up roughly 40 percent in recent months, further driving up material costs.