Lorry orders hit the brakes at Volvo Group

25 April, 2019 12:00 AM printer

STOCKHOLM: Lorry manufacturer Volvo Group said Wednesday that orders for its trucks fell by over a third in the first quarter although both sales and profits shot higher.

With transportation a key element of the real economy, the performance of the Swedish-based firm that also manufacturers Mack and Renault trucks can indicate trouble down the road, reports AFP.

While new orders fell by 36 percent, primarily due to North America, the reason has more to do with production constraints rather than demand.

“As expected, order intake in the region has remained low as our order books are close to full for 2019,” chief executive Martin Lundstedt said in a statement.