Report: Volvo Trucks chairman forecasts weaker 2000

STOCKHOLM (July 16, 1999) — Volvo AB chairman Karl-Erling Trogen predicted a moderate slowdown in North American heavy truck sales next year, and said his company has already started to see weakness in the market.

“This could have a certain effect in 2000 but 1999 is really strong,” Trogen was quoted as saying in a Reuters report. Referring to the condition of the U.S. economy, he made the comment at a news conference after the company posted its six-month production report.

It has been widely forecasted that truck sales in North America would remain strong at least until 2002.

Indeed, Volvo Truck deliveries in North America rose 12% to 15,840 vehicles during the first half of 1999.

The company’s share of class-8 sales in the U.S. was 11.5% in 1998, fourth in the market behind Freightliner Corp., Navistar International, and Mack Trucks. In Canada, Volvo sold 4045 class-8 trucks last year, a 13.9% share.

Trogen’s remark comes as Volvo is breaking ground on a $148 million expansion of its primary class-8 truck assembly plant in Dublin, Va. When construction is complete, the Volvo will be able to produce 50,000 trucks a year.