Volvo reported truck shipments down 9% year-on-year in May, due to weak demand in North America and Europe, its two biggest markets.
Volvo, the second largest truck maker in the world, sells trucks under Mack, Renault and UD Trucks brands and also under its own name. The automaker said that sales in Europe dropped 16%, in North America fell 10% and Asia dropped 9%. Over the last two quarters, demand in South America has increased thanks to the Brazilian government incentives and Volvo reported shipments in the market up 28% compared with May 2012.
Volvo said that sales in May dropped 5.5% to 35,660 units, with sales in the US up a modest 1.3% to 6,318 units, China up 24.4% to 4,415 units, while Sweden, the automaker’s second largest market, increased a record 1.8% to 4,664 vehicles. Sales in Europe dropped 10.2% to 18,053 vehicles and sales in other global markets dropped 12.3% to 6,874 units.
Last month Volvo announced its plans to sell its construction-equipment rental business in North America. Volvo’s construction-equipment rental business, known as Volvo Rents, is worth between $1 billion to $1.5 billion, according to an anonymous source, but no final decision for the sales has been made yet.