Bernd Brüggen, Managing Director of Krone Commercial Vehicle SE
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ou and all of us continue to face enormous challenges in today’s world. We have seen an unprecedented spiral of supply chain problems and extreme price increases since the end of 2020. The war in Ukraine has only exacerbated these problems since February of this year.
The cost of energy, such as electricity and gas, has skyrocketed. Prices for raw materials such as steel, aluminium and chemical precursors continue to rise. On top of this comes the strong inflation we are seeing in the euro area. At the same time, components such as brake modulators are becoming less available. The war in Ukraine has had dramatic consequences: for example, the Azov steelworks – previously the largest slab producer for Western steelworks – have been destroyed. The embargo against Russia, for example, is also strongly impacting the timber market: we at Fahrzeugwerk Krone need wood for the floors of our trailers.
Although we put priority on maintaining long-term, trusting relationships with our customers and suppliers, not even we are immune to the fact that, despite ongoing supply contracts, many manufacturers have increased their prices at short notice. Krone has always managed to meet its contractual obligations to you as our customers so far. The framework conditions are nevertheless currently so volatile that we are reaching the limits of our capabilities. Even experts did not foresee this war and its drastic consequences.
I assure you personally that we are doing everything we can to regain more stability for all of us and that we will continue to be a partner that you can count on. Let’s traverse these extraordinary times together and tackle the associated challenges in a spirit of partnership!
