Dutch Industry Announces Higher Bike Prices

AMSTERDAM, Netherlands -- This morning the Dutch press agency ANP broke the news to Dutch consumers -- bicycles are going to be more expensive this year. The report, based on interviews with several large Dutch makers, says that from September on the prices of high-end mountain, trekking and road bikes will be at least 10% more expensive. Holland is already one of Europe's most lucrative markets for high-priced bikes. "We have no other choice," says AC van Dierman, commercial director at Gazelle. And Gazelle is not alone. The prices of Accell bikes (Batavus, Sparta, Koga-Miyata, etc.) are also expected to increase considerably. Dutch makers blame the strong Japanese yen and Taiwan dollar against the fledging euro as the main reason for higher prices. Yet they also blame the high cost of labor as a reason to raise prices. Dutch bike manufacturers recently came to terms with the labor unions that from September on salaries will increase 3.8%. (JW)