"We are taking these steps even though Volvo's share of new truck orders rose recently by 8% to just over 10,000 units," said President and CEO Marc Gustafson. "While this is encouraging, our order position is still insufficient to support the higher production rates."
The company said it expects North American truck sales this year to be in line with totals from 1995 through 1998. Class 8 sales in 1995 were just over 201,000 units. The total dropped to 170,000 in 1996 and 178,500 in 1997, then climbed to 209,500 in 1998.
In addition to the production slowdown, Volvo says it will move aggressively to expand and accelerate the introduction of "new business solutions" including new truck models.
The slowdown will not affect an expansion of the Dublin facilities expected to be completed August 1 of this year.