UPDATE 1-Volvo cutting output after shipments fall in October
* Deliveries of Volvo trucks fall 8 pct yr/yr
* Says Volvo brand cutting shifts, taking stop days
* Renault brand to go to shortened work week (Adds detail, background)
STOCKHOLM, Nov 16 (Reuters) - World number two truck maker Volvo said on Friday it was cutting shifts and introducing shortened work weeks after shipments of its trucks fell 8 percent year-on-year in October.
The Swedish company said demand for long-haul trucks was slowing in North America in a sign of economic uncertainty, while lingering weakness in Europe meant it would be cutting output there in a move flagged by the group last month.
"Decisions have been made to lower production of Volvo trucks in Europe by removing shifts and using stop days for the remainder of the year to meet the lower demand seen in the third quarter," the company said.
Production has already been cut at its Renault Trucks arm. In addition, shortened working weeks would be introduced at the brand's plants starting at the end of this month, it added.
Heavy-duty truck makers have run into weaker demand in recent quarters as the euro zone crisis has stymied demand in Europe, while a U.S. upturn has faltered amid worries about the strength of the recovery and a looming fiscal tightening.
Volvo, which sells trucks under the Renault, Mack, UD Trucks and Eicher brands as well as its own name, said unit shipments in North America fell 18 percent and 16 percent in Asia.
In Europe, the group's biggest market and where demand has languished at a relatively low level for several quarters, deliveries were down 1 percent, while they eased 3 percent in South America. (Reporting by Niklas Pollard and Sven Nordenstam; Editing by David Holmes)
- Air strike kills 15 civilians in Yemen by mistake: officials
- North Korea executes leader's powerful uncle in rare public purge |
- Insight: In Yemen, al Qaeda gains sympathy amid U.S. drone strikes
- Twitter backtracks on block feature after users revolt
- Iran angry over U.S. sanctions, nuclear talks interrupted