Volvo Group announced it's making changes in its trucks strategy to achieve its goal of improving its operating margin by 3 percentage points, including ending production of UD medium-duty trucks for the U.S. market.
UD Trucks won't be available in the U.S. under a new Volvo strategic plan.
Volvo is taking approximately SEK 600 M of restructuring charges in the third quarter related to a cost reduction program in Japan and the ending of production of UD trucks for the U.S. market. Volvo says the demand in the cab-over-engine segment has declined and the regulatory costs have increased over the last few years.
Some of the other strategic objectives in Volvo's 2013-2015 strategy include: