Volvo increasing truck production in Sweden

[kscarbel2]

Göteborgs-Posten  /  April 27, 2016

Volvo Group has had a mixed first quarter. Both sales and earnings and order intake for trucks drops compared to the same period last year - but the drop is significantly less than the market analysts had expected.

In addition, growing truck sales in the European market are having a positive impact on Volvo’s Tuve truck plant in Gothenburg, Sweden. The production rate will be raised from 60 to 75 units per day to meet the strong demand.

The possibility of hiring further employees is now under consideration.

“We are in the midst of the work to look at how production changes affect the various factories. I will therefore return to this matter. But a production increase of 25 percent is of course always positive,” says Volvo CEO and President Martin Lundstedt.

He describes the past quarter as "decent".

“We have handled the fluctuations in the various markets good, for example we have managed to deal with the declining demand in North America in a good way. Volvo CE is working on good and it is also good for buses,” summarizes Martin Lundstedt.

North America continues therefore to be the major problem child - where more than half in order bookings for trucks over the same quarter last year.

In South America and Asia, orders fell by 9 and 15 per cent.

Demand for construction equipment and marine engines also decreased, while order bookings for buses rose.

Europe is, with an increase in orders for trucks at 23 percent, the highlight of Volvo’s first quarter report.

“The basic economy in Europe means that our customers now dare to reinvest,” says Martin Lundstedt.

This past March, Volvo Group announced a new so-called brand-based organization, where the different truck brands Volvo, Renault, Mack and UD now have their own profit responsibility. The aim is to increase profitability. Exactly when the change will take effect at the numbers is now unclear.

“We will see the effects of the gradual the coming time,” says Martin Lundstedt.