Volvo Group - Report on first nine months 2008
After a first and second quarter with record sales and record income, sales growth decelerated much more rapidly than expected during the third quarter, as visible in the reported earnings. The downturn in the economy has been significantly exacerbated by the global financial crisis. The important European market has declined significantly, while North America and Japan continue to show weak demand. In addition, we are seeing indications that the economic climate is also weakening in other parts of the world. Because of the deceleration being so rapid, we haven't been able to reduce our costs at the same pace, but currently hard work is being performed around the Group in order to adjust operations to the present market situation and to counter the effects of increases in the cost of materials.
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