Volvo Group’s first quarter results for 2025 have shown a 7% drop in net sales, totaling Skr121.8bn ($12.65bn) compared to Skr131.2bn in the same period last year. The decline in sales was observed across all regions and segments except for buses. Both adjusted and reported operating income also decreased to Skr13.25bn from Skr18.15bn in the previous year, resulting in an operating margin of 10.9%, down from 13.8%.
The decrease in income was attributed to lower sales volumes, an unfavorable mix of brands and products, lower production efficiency in US truck plants, and the transition to a new truck platform in North America. Despite these challenges, net order intake increased by 13% to 55,227 trucks, while deliveries decreased by 12% to 48,833 units in the first quarter of 2025.
Deliveries of heavy-duty trucks fell by 7%, medium-duty trucks by 26%, and light-duty trucks by 36%. Volvo Group also revised its forecast for North America’s heavy-duty truck market, lowering it to 275,000 units from the initial estimate of 300,000 units for the year.
Volvo Group president and CEO, Martin Lundstedt, highlighted the company’s market share achievements in Europe and Brazil, while acknowledging challenges in North America due to the transition to a new product platform. He emphasized the need to adapt to the changing geopolitical landscape and mitigate the impact of tariffs on demand.
In response to market uncertainties, Volvo Group announced plans to cut up to 800 jobs across three US facilities within the next three months. This decision was influenced by the ongoing trade tensions and demand concerns exacerbated by tariffs imposed by the US government.
As Volvo Group navigates through these challenges, the company remains focused on adapting its operations, production capacity, and commercial strategies to address the evolving market conditions. Despite the short-term challenges, Lundstedt remains optimistic about the long-term growth prospects in the transport and infrastructure industries.
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