STOCKHOLM (Reuters) - Truck maker Volvo (VOLVb.ST) will cut production in North America in December and January in the face of lower demand and high inventory levels at dealerships, it said on Thursday.
After booming orders in the North American heavy-duty truck market in late 2014 and early 2015, demand has slowed throughout this year.
“In North America we will take 2-1/2 stop weeks in addition to the normal Christmas and New Year’s leave,” Volvo spokeswoman Kina Wileke told Reuters.
Volvo, which in North America mainly sells trucks under its own as well as the Mack brand, said the production stops would take place in December and January on the Volvo Trucks side.
The Swedish firm, a rival of truck brands from Daimler (DAIGn.DE), Volkswagen (VOWG_p.DE) and U.S. group Paccar (PCAR.O), in October forecast the North American heavy-duty truck market would contract 10 percent in 2016.
Volvo also said on Thursday its global truck shipments rose 2 percent in October year-on-year compared with a mean forecast for flat deliveries in a Reuters poll of analysts.
Reporting by Johannes Hellstrom; editing by Niklas Pollard