Despite Lowered Projections, Volvo Positive About 2016
Published On Feb 26, 2016
It has been an incredible year for Volvo in 2015 in North America, as it selling more than 3 lakh units of Class-8 trucks in the region. However, the forecast for the upcoming year is projected at 260,000 units, which the company's official claims it to be “the new normal”.
“Coming from 300,000 down to 240,000 can be concerning, but we’re coming off a peak year. We have to adjust to this new normal and realize we are still having a very good year,” said Goran Nyberg, president of Volvo Trucks North America. Briefing the press about company's projection Mr. Nyberg has further said that the sales in first two quarters will be on lower side. At the same time, he also expressed confidence that Volvo can achieve 260,000 unit sales mark by the end of second half of the year.
In the United States, about 93 percent of the Volvo trucks are powered by the company's own diesel motors, while 83 percent of them are mated with the brand's IShift automatic transmission gearbox. This helped gained momentum for the brand's integrated power-train strategy in the country. Recently, the Swedish firm has announced reorganization of its Volvo Trucks Group that contains five brands. As part of this new strategy, each player in the group will operate its business as an individual entity in the global arena. However, in the US both Mack Trucks and Volvo will share the services, but manage their operations separately.
After witnessing a record growth in Class-8 market of North America, the Swedish firm is now looking towards other sectors including regional distribution applications, intermodal freight transport and petrochemicals. For every new truck in the US, the company is offering its remote diagnostics and connectivity uptime services as standard features. This eventually helped to lower the unplanned downtime of each truck by at least one day.