Volvo Truck Deliveries Flat in November Despite 40% Rise in Europe
Volvo Group reported November truck deliveries were flat from the same month a year earlier, but included a 40% rise in Europe as other regions declined.
Analysts said demand in the European market reflected replacement of aging vehicles, government-generated economic stimulus and rising freight demand.
Gothenburg, Sweden-based Volvo’s wholly owned operations delivered 18,333 trucks, compared with 18,251 in November 2014, an increase of less than 0.5%. Of the total, 15,376, 83.9%, were heavy-duty models.
Deliveries in Europe climbed to 8,803 units in November, from 6,291 a year earlier, Volvo said, which included 1,563 trucks to Eastern Europe.
The company’s North American subsidiaries include Volvo and Mack Trucks, and deliveries in that region fell 2%.
Both its U.S.-based truck makers announced layoffs in December to match expected declines in production rates in 2016.
Last month, Mack’s deliveries were down 6% to 2,021 in North America, while its sales of 95 trucks to South America were off 64%.
Volvo Truck’s deliveries rose 2% to 2,912.
For all of Volvo Group, deliveries in South America fell 63%, and by 9% in Asia.
Year to date, the corporation delivered 189,803 trucks, up 3% from a year earlier.
Meanwhile, the Brussels-based European Automobile Manufacturers Association, ACEA, reported demand for new commercial vehicles in the European Union rose for the 11th-consecutive month in November, climbing 17.8%, year-over-year, to 179,930 units.
ACEA said growth, as measured by new registrations, was sustained across all commercial vehicle segments.
Also in November, Spain saw a 52.2% increase in commercial registrations, Italy was up 28.4%, followed by Germany up 14.9%, the United Kingdom with a 14.3% increase and France rose 5.6%, ACEA said.
Year-to-date, the EU market expanded 12.2%, totaling 1.9 million commercial vehicles. During the same period, Spain saw a 37.9% increase, the United Kingdom was up 16.4%, Italy 11.9%, Germany 3.9% and France 2.4%.
Two transportation analysts pointed out that a number of heavy-truck component and vehicle suppliers for the U.S market also sell overseas, including: Accuride Corp., Actuant Corp.’s engineered solutions segment, Allison Transmission Holdings, Cummins Inc., Eaton Corp., Modine Manufacturing Co., Navistar International Corp., Wabco Holdings and Paccar Inc., the parent company of DAF Trucks.
Ann Duignan, with J.P. Morgan Securities, said in a note that she is maintaining her 2016 heavy-duty truck forecast for the EU region.
Duignan said improving European economies and the weaker euro exchange rate, which benefits export demand, and the European Central Bank’s quantitative easing program, are driving demand for heavy-duty trucks.
“Our forecast for the region of 260,000 units for 2015, up 16% year-over-year, reflects continued strength in reported registrations,” she said.
David Leiker, with Robert W. Baird & Co., said in a note, “Based on tire shipment data, build is tracking up 13%, quarter-to-date, above our fourth quarter estimate for 10% growth. Given the freight trends, up mid-single digits in recent months, and fleet age at the highest level in the past 35 years, we expect Europe demand/production to rise mid-single digits in 2016.”
