Volvo August truck shipments fall 4 percent year-on-year, hit by product rollout
Volvo, the world’s number one truck maker, has stated that deliveries of its trucks dropped by 4 percent year-on-year as shipments fell in both North America and Europe.
Volvo also reported that costs of ramping up production of a wide range of new vehicles would weigh in the months ahead — in anticipation of an economic turnaround.
“In this situation of extensive product launches, you get volatility between the months of delivery. July was a little better than it should have been and in August was worse,” said Hampus Engellau, an analyst at Handelsbanken Capital Markets, adding that he had expected volumes would be up 8 percent.
Volvo, which sells trucks under the Renault, Mack and UD Trucks brands as well as its own name, said shipments in its top market, Europe, slipped 18 percent while they dropped 3 percent in North America.
On the positive front, shipments increased 12 percent in South America, where government incentives have underpinned booming demand in Brazil over the past year, while they were flat in Asia.
An upturn in demand in Europe has led to order books growing in recent months, albeit from low levels, while a U.S. recovery is on firmer ground after a rough patch around the turn of the year as public spending was cut.
Renault Trucks launched a completely new truck program in June. Volvo said on Wednesday production of certain models of the new ranges at Renault had started with the first deliveries expected in September. Renault reported a 30 percent drop in deliveries in August compared with the same period a year ago.
Category: Featured, General Update, Vehicles
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