Volvo Group: New truck deliveries continue freefall in N.A.

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GREENSBORO, N.C. — Volvo Trucks continues to feel the combined effects of an economic slowdown and last years pre-buy, with its North American deliveries from January to October dipping 61% compared to last year.

Globally, the truck maker has realized a 2% increase in deliveries so far this year. Thats due in part to a staggering 221% increase in Asia. North American deliveries of Mack trucks are down 59%.

Production disturbances in North America earlier this year resulted in a large order backlog with long lead times, Volvo Group said in a release. To address the long lead times, Volvo Trucks has temporarily increased production rates at the New River Valley plant as from the end of October until the end of January.

Deliveries of Mack trucks were up slightly in October, the company announced. However, sales were still well off last years pace.

The deliveries numbers reflect continuing soft demand for heavy-duty trucks in North America, the company said. The lower demand is a consequence of customers pre-buying trucks in 2006 in combination with weakness in the freight environment and a drop-off in housing construction.

Volvo Group said response to Macks new MP engine series remains positive, with customers reporting improvements in fuel economy and drivability.

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