Blue Bird Announces Price Increases for Type C and D Bus Model Types

Rhea-AI Summary

Blue Bird Corporation, a leader in electric and low-emission school buses, announced a 4.0% price increase on all net selling prices for Type C and Type D buses effective from March 1, 2022. This decision comes in response to rising material, freight, and labor costs primarily due to the COVID-19 pandemic. CEO Matthew Stevenson highlighted the 7% inflation reported by the Labor Department in 2021 as a significant factor, emphasizing the need for this adjustment to maintain operational stability.

Positive

• None.

Negative

• Price increase of 4.0% may deter potential customers and impact sales.
• Inflation rate of 7% in 2021 signals rising operational costs, affecting profit margins.

FORT VALLEY, Ga.--(BUSINESS WIRE)-- Blue Bird Corporation, the leader in electric and low-emission school buses, announced today that it will implement a price increase to offset rising material, freight and labor costs primarily driven by the global COVID-19 pandemic. The 4.0% total price increase will impact all net selling prices for Type C and Type D model activity and school buses ordered on or after Tuesday, March 1^st, 2022.

“As we enter 2022, the school bus industry continues to face challenging and unprecedented times,” said Matthew Stevenson, President and CEO of Blue Bird Corporation. “According to a recent Labor Department report, inflation grew by 7% in 2021, the fastest 12-month increase in nearly 40 years. We continue to work with our supplier partners to limit the negative impact, but felt it was necessary to make this adjustment to our bus pricing. In addition, we have discussed the challenging business environment with our Dealer Advisory Council. We will continue to be transparent with all of our loyal Blue Bird customers and remain committed to building best-in-class school buses.”

About Blue Bird Corporation

Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. Blue Bird buses carry the most precious cargo in the world – the majority of 25 million children twice a day – making us the most trusted brand in the industry. The company is the proven leader in low- and zero-emission school buses with more than 20,000 propane, natural gas, and electric powered buses in operation today. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird's complete product and service portfolio, visit www.blue-bird.com. For Blue Bird's line of emission-free electric buses, visit www.bluebirdelectricbus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220204005054/en/

For More Information

Gabrielle Young | Blue Bird Corporation

478.822.2016 | Gabrielle.Young@blue-bird.com

Source: Blue Bird Corporation

FAQ

What is the recent price change for Blue Bird Corporation's buses?

Blue Bird Corporation announced a 4.0% price increase on Type C and Type D model buses effective from March 1, 2022.

Why did Blue Bird Corporation implement a price increase?

The price increase is aimed at offsetting rising material, freight, and labor costs driven by the COVID-19 pandemic.

When does the price increase for Blue Bird Corporation's buses take effect?

The price increase will take effect on March 1, 2022.

What factors contributed to Blue Bird Corporation's decision to raise prices?

A 7% inflation rate in 2021 and rising costs due to the pandemic were key reasons for the price increase.

Which models of buses are affected by Blue Bird Corporation's price increase?

The price increase applies to Type C and Type D model activity and school buses.