Hyperdrive

Volvo Falls After Outlining Truck Output Cut on Lower Demand

  • Fourth-quarter truck orders decline 9% after record deliveries
  • Volvo earnings beat despite cost pressure, tough supply chains

Trucks at the Volvo plant in Gothenburg, Sweden.

Photographer: Hollie Adams/Bloomberg
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Volvo AB declined after saying the truckmaker will gradually reduce production to move in line with normalizing demand following years of supply-chain disruptions that left manufacturers with record order banks.

“The pent-up demand situation which characterized 2022 and 2023 has largely been absorbed by the transport industry and lead times, particularly in Europe, are back to more normal levels,” the world’s second-biggest truckmaker said Friday.