Volvo said it expects sales in its two largest markets, Europe and North America, to remain the same in 2013 due to weak demand.
Volvo’s operating profit decreased 50% to $436 million in the third quarter, compared with the same period last year. Earlier this year the automaker announced production cuts due to the European economic crisis and the faltering US economic recovery.
“During the third quarter, sales for the Volvo Group were impacted by the weakening in demand that has become increasingly evident around the globe,” said Olof Persson, chief executive.
The company said it expects sales in Europe and North America to remain the same in 2013, but it hopes for an improvement in Brazil, where government incentives for customers who want to buy trucks has increased demand. This year so far, Volvo’s sales have dropped 5% in Europe and increased 15% in North America.
Order for its heavy-duty trucks produced under the Mack, Renault, Eicher and UD Trucks brands, has fell 25% in the third quarter compared with the same period last year. Earlier this month the company announced it signed a letter of intent with MAPE to sell its Leganes plant, in Spain, for structural reasons.