Volvo AB’s revenue fell within the first quarter as uncertainty over US tariffs hit truck demand in North America.
Working revenue dropped to 13.3 billion kronor ($1.4 billion) from 18.2 billion kronor a yr earlier. The corporate additionally reduce its full-year forecast for North America’s heavy-duty truck market to 275,000 models, down from round 300,000.
European truck makers are feeling the stress from weaker demand and tighter pricing, that are squeezing income. For Volvo, the dearth of readability on US commerce coverage is predicted to additional pressure freight exercise and tools gross sales within the coming months.
In response, Volvo plans to put off as much as 800 staff throughout three US services. The corporate, which manufactures all its North American vehicles domestically, additionally stated it might search compensation from clients to offset rising manufacturing prices attributable to the brand new tariffs.
In the meantime, Volkswagen’s truck division Traton SE, which owns Scania and MAN, warned of decrease income this quarter on account of falling deliveries and gross sales.
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