The Volvo Group said it has developed a medium-heavy diesel engine for trucks and buses that is scheduled for launch in 2010.
Chief Executive Officer Leif Johansson also said the company’s investments in research and technology will remain at high levels in the next few years, when new emissions standards take effect in its major markets, and commented on current market trends.
“We have not yet seen any signs of our primary markets in Europe or North America recovering, although we may have started seeing indications of trends leveling out,” he said. “We are working intently on reducing our stock of trucks and construction equipment, while striving to defend our price levels.
“In light of the weak demand in the market, we have made further reductions to production compared with the first quarter. We will continue to have low cost coverage until we have balanced our stocks and costs with demand in the market, and this will impact profitability,” he said in a statement.
Volvo, the parent company of Volvo Trucks North America and Mack Trucks, said Monday its North American deliveries fell 62% in May compared with a year ago.
