Swedish truck and bus manufacturer Volvo Group has entered the red sea due to the crisis. The company noticed a decline in demand for trucks in its main sales markets. However, the result was slightly better than analytics forecasted.
The company closed the second quarter of the year with a loss of SEK 282 million (EUR 27.3 million). That was a profit of SEK 11.1 billion a year earlier. Experts have taken into account an even greater loss of SEK 811 million.
Volvo’s turnover amounted to SEK 72.2 billion, against SEK 120.7 billion a year earlier. The number of delivered trucks fell annually by 57 percent to over 28,000. In addition, the number of new orders was 45 percent lower.
To cut costs, Volvo, which also works in construction machinery and industrial equipment, had previously indicated that it would cut 4,100 jobs in the office. The company had previously dropped its expectations for the year and is not yet venturing new forecasts.