In view of the current highly disrupted economic situation, particularly since the start of the war in Ukraine, which is causing severe constraints on supplies, and in view of the soaring costs of raw materials, CHEREAU has decided to cancel its participation in the IAA Transportation in Hannover in September 2022.
“In such a context, it is essential that we focus on the company’s key priorities because the economic situation must not make us forget that we must prepare for the upcoming energy transition and maintain our investments to replace diesel semi-trailers with semi-trailers running on other energy modes: batteries powered by solar panels and/or e-axle and/or hydrogen” explained Damien Destremau, CEO of CHEREAU and The Reefer Group.
He continued: “On the other hand, our customers, to whom we ask for price increases on the orders taken last year in order to compensate for the unprecedented increase of our production costs due to the increase of raw materials, would not understand that we maintain certain expenses.
“We are probably in a vanguard position, by our industrial exposure and our geographical footprint throughout Europe. We see the storm coming, perhaps before the others, but humbly, we cannot say how strong or how long it will last. We would like to thank our customers, many of whom have been true partners for decades. Indeed, we have had to pass on to them strong price increases, but also to review contracts signed in 2021 which were becoming unsustainable because of the sudden increase in raw materials following the Russo-Ukrainian war.”
“Our customers thus enable us to do everything we can to avoid a negative financial result and thereby maintain our investments in terms of product development to ensure the energy transition, and prepare our industrial tool for the challenges of the 21st century, in particular digitalization.”