AUGUSTA, GA (Nov. 17, 2009) – Club Car, the world’s largest manufacturer of golf and utility vehicles for the golf market, announced a price increase for 2010 model year vehicles that reflects a renewed spike in global commodity costs.
The price for Club Car golf cars and utility vehicles will increase approximately 2.5 percent on orders beginning on Nov. 20, 2009. Company officials pointed to the rising cost of raw materials – especially lead, copper and aluminum – and a strengthening global economy as a primary reason for the increase.
“The raw materials we use the most are some of the same materials that are now in greatest demand around the world,” said Gary Michel, president and CEO of Club Car.
Since December 2008, according to the London Metal Exchange, the cost of copper has increased 50 percent, lead has jumped 35 percent and aluminum has increased 15 percent. The latest round of commodity increases follows historic price escalation in these materials in 2007.
Club Car annually purchases electric batteries that include approximately 20 million pounds of lead, and eight to 10 million pounds of aluminum are used to fabricate vehicle chassis. In addition copper wiring is used extensively in the vehicles’ electric motors and other components.
Michel said Club Car continues to work with its more than 300 suppliers to evaluate parts and subsystems that help the manufacturer “achieve the same or better performance with less expensive components or processes.” The company also employs hedging, just-in-time inventory and shared-warehousing strategies to control costs and mitigate price increases for the customer.
“Some of the best productivity and value analysis/value engineering gains are process related, looking at the entire supply chain to see how we can procure the part, move the part and assemble or install the part most economically,” Michel said.
Club Car also benefits from sourcing managers based around the world on behalf of parent company Ingersoll-Rand who make high-volume purchases to achieve economies of scale for the entire enterprise.
“Anytime there’s a part or a component or a subsystem or a redesign that allows us to provide a better product for the customer, we’re going to take advantage of it,” Michel said.
About Club Car and Ingersoll Rand
Club Car Honors the Game in its service to customers and support of the golf industry. Club Car is the exclusive premier partner of the National Golf Course Owners Association in the U.S. and NGCOA Canada’s exclusive Golf Car Supplier and Platinum Partner. Club Car is also a sponsor of the European Golf Course Owners Association, a Silver Partner of the GCSAA and a Corporate Advantage Partner of the Club Managers Association of America. It is the Official Supplier of Golf Cars and Utility Vehicles to the 2010 Ryder Cup, the Official Golf Car and Golf Utility Vehicle and an Official Sponsor of the PGA European Tour, the official supplier of golf cars and utility vehicles to PGA Tournament Players Clubs and leading sponsor of the PGA Professional National Championship, The First Tee and the Executive Women’s Golf Association.
Club Car provides fleet, turf, hospitality and financing solutions for golf, agricultural, recreational and industrial markets. For more information on Club Car, go to www.clubcar.com. Based in Augusta, Ga., Club Car is part of the Industrial Technologies sector of Ingersoll-Rand plc. Ingersoll Rand (NYSE:IR) is a global diversified firm providing products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties and increase industrial productivity and efficiency. Driven by a 100-year tradition of technological innovation, we enable our customers to create progress and a positive impact in their world. For more information, go to www.ingersollrand.com.
Contact:
Bill Bryant, Bryant Marketing Communications
(678) 366-3232, bbryant@bryantmarcomm.com
