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Truck deliveries November 2008

Total deliveries from the Volvo Group’s truck operations in November amounted to 19,326 vehicles which is a decrease of 21%, compared with the year-earlier period. During the fourth quarter, the Group is forced to continuously take stop days and stop weeks in production to avoid inventory build-up of trucks.
Truck deliveries November 2008

Customers continue to be very cautious and are in most cases waiting with their investment decisions due to the current uncertain macro economic environment. In Europe, the weak order intake trend from the third quarter continues. During October and November, the number of cancelled orders was bigger than the number of new orders, which resulted in a negative net order intake of 1,800 trucks in Europe. The weakening outside Europe and North America has continued and lately also accelerated, which has resulted in a substantial weakening of order intake also on these markets.

In total, the effect is that the order book continues to shrink at a rapid pace. This forces the Group to, as previously announced, make quick adaptations through big reductions of production in all factories world-wide. As in the fourth quarter 2008, it will be necessary to implement a large number of stop days in the European industrial system also during the first quarter 2009, when the production will be stopped for approximately 20-25 days. This means that there is no production, while the personnel and thereto related cost remains.

Volvo Group
Total deliveries by market for the Volvo Group’s truck operations (Mack, Renault Trucks, Volvo Trucks, Nissan Diesel and Eicher):

Delivered Units

Isolated month

Change

Year-to-Date

Change

Volvo Group

2008

2007

 

2008

2007

 

Europe

7 810

13 406

-42%

114 886

115 772

-1%

    Western Europe

6 817

10 600

-36%

90 025

91 156

-1%

    Eastern Europe

993

2 806

-65%

24 861

24 616

1%

North America

2 495

3 198

-22%

27 449

29 431

-7%

South America

1 390

1 534

-9%

16 651

13 796

21%

Asia

5 593

4 511

24%

55 415

44 773

24%

    Middle East

2 700

1 326

104%

16 656

10 477

59%

    Other Asia

2 893

3 185

-9%

38 759

34 296

13%

Other markets

2 038

1 729

18%

18 589

18 978

-2%

Total Volvo Group

19,326

24,378

-21%

232,990

222,750

5%

 

 

 

 

 

 

 

Light duty (< 7t)

2 120

3 952

-46%

37 946

36 542

4%

Medium duty (7-16t)

2 067

2 603

-21%

28 835

28 354

2%

Heavy duty (>16t)

15 139

17 823

-15%

166 209

157 854

5%

Total Volvo Group

19,326

24,378

-21%

232,990

222,750

5%

For the complete version of truck deliveries, see attached document or visit VolvoGroup.com -> investors -> truckdeliveries

December 16, 2008

Reporters who want more information, please contact:
Mårten Wikforss, AB Volvo, +46 31 66 11 27 or +46 705 59 11 49

Investor Relations
Christer Johansson, AB Volvo, +46 31 66 13 34
Anders Christensson, AB Volvo, +46 31 66 11 91