Volvo announces an unexpected drop in sales of trucks in July

Stockholm (Reuters)-Volvo, second largest truck manufacturer in the world, unveiled an unexpected drop in sales of trucks in July, hit by the slowdown of economies in Europe, South America and Asia.
Sales of Volvo trucks, Mack, UD Trucks and Renault fell 9 percent compared to the previous year, compared with an average forecast in a Reuters poll of analysts growth of 4 percent.
Volvo said that in Europe, the basis for comparison was affected by strong numbers from last year due to the creation of new emission standards, while the slowdown of economies of countries like France also had an impact.
Volvo said sales in its main market, Europe, receded 17 percent, while sales in South America fell 36 percent, affected mainly by Brazil.
Brazilian consumers took a cautious position ahead of the presidential election this year, while Volvo also disrupted production in the country during the World Cup.
Sales in Asia fell 15 percent, but they grew 21 percent in North America.
"The United States have a strong economy right now with demand in the transportation sector, activity in the construction sector and were pressured by older fleets, and these are now starting to be replaced," said Volvo spokeswoman Kina Wileke.
Volvo expects demand for trucks in Europe this year has a slight contraction due to a weak start of the year, but that record decent growth in North America.
(By Mia Shanley and Simon Johnson)