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Volvo to slash truck production over sluggish demand

ABR Staff Writer Published 20 December 2012

Swedish automobile manufacturer Volvo is planning to slice its trucks production following the 17% slump in its global sales in November 2012.

During the month, truck deliveries in Europe declined 13% to 3,835 units, while deliveries in North America dropped 24% to 2,243 vehicles over the same period previous year.

According to the firm, the euro zone crisis has been mainly responsible for reduced demand for trucks which is further forcing it to slash production in North America.

Volvo said in a statement: "Concerns about the economy continued to affect the market, and a combination of stop days and rate reduction is being implemented to align production with demand."

November sales in Asia too have declined 19% to 1,132 units in addition to 21% slump in South American market compared to the same period in 2011.

Volvo Group's other truck brands including Volvo Group Mack, Renault Trucks and UD also reported respective declines of 24%, 11% and 19%, while sales of Volvo's Eicher brand had shown growth by rising 5% during the period, compared to corresponding period last year.