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SUBJECT Bike Makers Raise Prices
DATE 2010-08-04

 

Bike Makers Raise Prices
 
HEERENVEEN, the Netherlands - Accell Group is the first bike manufacturer announcing price increases. Most producers will follow this fall. Accell and its subsidiaries Batavus, Sparta, Koga-Miyata, Winora, Ghost, Lapierre, Tunturi and all other companies belonging to the Dutch holding are raising their prices with 5 to 10%. 
With the new 2011 collections being presented to their dealers this fall Accell and all its subsidiaries are selling their bikes for prices that are on average 5 to 10% higher compared to last year’s model ranges.
In an interview Bike Europe had with Accell Group CEO René Takes last Friday at the presentation of the holding company’s half year results he said: ‘About one month ago we announced to our dealers a price raise of between 10 to 15%; since then the dollar exchange rate came down. This enables us to limit the price increase to 5 to 10%.’
 
China Labour Crisis
The price hikes at bike makers follows on component manufacturers which with the start of the new OEM season last June announced their price increases. They reported to Bike Europe that the China labour crisis; the euro exchange rate; hikes in shipping costs as well as higher prices for  raw materials forced them to price raising between 5 to 6%.
 
It is likely that the price increases for 2011 bikes will be followed by more hikes. In particular when the Chinese government under heavy pressure for the US and EU, decides to finally take action on the yuan appreciation. Bank economists expect that this appreciation will take place during the third quarter of this year. They indicate a possible 15% raise of the yuan exchange rate.
 

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