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