Logistics, transportation, and infrastructure will be needed in the future. 2025 has a number of challenging parameters, but we have a strong capability within the group, says Martin Lundstedt.
We are a global company. We have operations in over 150 countries. So we are used to taking into account different types of changes in trade patterns, he adds.
Lowered forecast for North America
Both profit and revenue fall short of expectations in the report for the first quarter of the year from AB Volvo. And the margins are being squeezed. In the report, the forecast for North America is lowered by 25,000 to 275,000 truck deliveries this year.
According to Lundstedt, this is partly due to a cautious attitude among North American customers, but also because Volvo no longer sees any effect ahead of the new emission regulations that were to come into force in 2027.
There, we had counted on some pre-purchase effects. But will it happen? It will not happen in 2025, at any rate. That is our assessment, says Lundstedt.
The situation is special, as the turbulence Volvo is currently struggling with largely comes from the world's largest economy. Moreover, it has been a turbulent situation, with many sudden changes in announcements.
But we also have the opportunity to influence this. We have strong regional value chains, not least for the truck business. We are using this now to think about how we should adjust flows and adjust production volumes and work closely with customers to try to understand this. It is an intensive effort that is underway.
"Reviewing flows"
Despite Volvo producing 100 percent of what is sold in the USA in the USA itself, the company is struggling with tariffs on various types of input goods needed in production.
Here, we need to work on, both in the short and medium term, reviewing which flows we should have when it comes to these input goods – to be able to optimize both cost and the overall picture. But we must also work on the commercial terms. A certain part of this will be passed on to our customers and their customers, says Lundstedt.
In the USA, Volvo is flagging staff reductions, but in Sweden, the personnel needs are currently pointing upwards as demand from other directions is going in the right direction, according to the Volvo CEO.
We see a improved order intake now and if anything, we are increasing production in the Swedish industrial operations right now to meet it.
At the Stockholm Stock Exchange's opening, the Volvo share falls by around 2 percent.
Truck manufacturer AB Volvo reports an adjusted operating profit of 13.2 billion kronor for the first quarter of the year. This can be compared to 18.2 billion kronor a year earlier.
The average forecast among analysts was a profit decline to 14.7 billion kronor, according to a forecast compilation made by the news agency Bloomberg.
Revenue decreased by 7 percent to 121.8 billion kronor.
As a result, the Volvo management has written down the forecasts for the number of new registrations in North America by 25,000 trucks under 2025.
On the other hand, the total order intake increased by 13 percent to 55,227 trucks.
