Volvo AB expects a trucking slowdown to extend into next year as uncertainties linked to President Donald Trump’s tariffs weigh on demand in North America.
The manufacturer sees North American registrations of heavy-duty trucks slipping to 250,000 unit next year, from an expected 265,000 this year, it said Friday.
Truck orders remain under pressure from weak freight activity and regulatory uncertainty in the US. French tire maker Michelin earlier this week lowered its financial guidance for the year following a bigger-than-expected sales slump in North America.
Volvo and its peers Daimler Truck Holding AG and Volkswagen AG’s Traton are bracing for Trump’s planned 25% tariffs on imported medium- and heavy-duty trucks, which are due to take effect next month.
While Volvo, which also owns the Mack brand, builds several models domestically, it still faces higher costs for imported components used in US production. The group operates 16 manufacturing and remanufacturing facilities in the US, Canada and Mexico, according to its website.
Volvo’s adjusted operating income for the third quarter dropped to 11.7 billion kronor ($1.24 billion). Net truck order intake fell 14% due to declines in Europe, South America and Asia.
“We are in a period with weaker demand in our key regions and with increased uncertainty in North America,” Chief Executive Officer Martin Lundstedt said in the statement. “In this situation, we focus on what we can impact.”
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Published on October 17, 2025
