Volvo hikes cost of new plant

Volvo is introducing 5% increases to the cost of new machines and components in an effort to reduce the impact of global steel prices.

Construction News (CN) ran the story, saying other manufacturers are now also considering above-inflation cuts once they have the effects of Volvo's decision are assessed.

Executive vice president Scott Hall told CN that the increases were inevitable due to the ballooning price of steel and other commodities, plus demand in developing countries, particularly China. Volvo Construction Equipment produces equipment including scrapers, graders, excavators and dump trucks.