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More on Major Price Increases

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Earlier this week, on July 24, we reported that major price increases are on the way as the euro – dollar rate was heading towards 1.20. Since last Tuesday the euro value against the dollar was up again and traded yesterday for a rate close to 1.23. Still it’s a lot down on what this rate looked like over a year ago when about 1.40 dollar was paid for one euro.

More on Major Price Increases

As the drop in euro value has a big impact on parts purchasing in the Far East we concluded in our July 24 report that it will result in major price increases for the 2013 line-ups that are currently introduced. This was also based on the fact that the biggest dealer cooperative in Europe – the ZEG – recently announced that it was raising the price for one of its e-bike top models with 8.5%.

Yesterday, a very different view on what looks like inevitable price increases for MY 2013 models was expressed. I attended the presentation for the mid-year financial results of Accell Group NV. Here I asked CEO René Takens about the ‘inevitable’ price increases. He said, “It’s not the right time for price increases with low consumer spending in lots of European countries. We have to compensate the cost price rise differently. For instance by a smarter use of materials and probably by down-specking.”

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