* Volvo Feb truck deliveries -26 pct yr/yr
* Europe down 18 pct, N America falls 46 pct
* Govt incentives support Brazil demand
(Adds detail, background)
STOCKHOLM, March 20 World number two truck maker
Volvo said on Wednesday that shipments of its trucks
fell 26 percent year-on-year in February as lingering weakness
in Europe and North America offset stronger demand in Latin
Heavy-duty makers have faced tougher times in recent
quarters as the deep economic downturn in Europe and sluggish
activity in North America has weighed heavily on the highly
cyclical demand for commercial vehicles.
Volvo, which sells trucks under the Renault, Mack, UD Trucks
and Eicher brands as well as its own name, said deliveries in
its biggest market, Europe, were down 19 percent while they
tumbled 46 percent in North America.
"The decrease was driven in part by the ongoing realignment
of production to current industry demand that began in the
fourth quarter of 2012," the company said of the steep fall in
shipments of Volvo trucks in North America.
Shipments were down 24 percent in Asia but rose 10 percent
in South America, where government incentives in Brazil, the
region's biggest economy, has fuelled a surge in demand in
Volvo, which slashed inventories while idling shifts at its
plants late last year, said in February it expected market
conditions to gradually improve through the course of 2013 as
global economic growth gained traction.
The company, which this year said it would dethrone German
Daimler as the world's top heavy trucks maker once a
joint venture in China was finalised, has forecast flat 2013
markets in Europe and North America but firm growth in Brazil.
(Reporting by Niklas Pollard and Johannes Hellstrom; Editing by