Volvo has 8% drop in sales in Brazil

Volvo, second largest truck manufacturer in the world, saw its sales in the Brazilian market fall 8% in the first six months of this year compared with the same period in 2013. In the first half, the company sold 45,309 trucks in Brazil.
In a report presented to the market yesterday, the automaker highlights the retraction of the Brazilian economy and the need to adapt their production to a weak demand in the country.
According to the document, the deterioration of conditions in Brazil pulled down the performance of the company in South America, with 36% decline in the first half on a year earlier. "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," says the company, in a report however, sales of Volvo trucks also had backing in Europe and Asia, respectively, of 17% and 6% in the first half of this year.
In North America sales advanced 19% in the first six months of the year against the same period in 2013, mainly due to the demand in the United States. "The u.s. has a strong economy right now with demand in the transportation sector, construction activity and need to replace an old fleet," says automaker, in the document.
Overall, sales of heavy vehicles from Volvo, Mack, UD Trucks and Renault fell 9% compared to the previous year, to 123,518 units in the first six months. In the second quarter of this year, the sale of trucks totaled 60,502 units, down 5%. Already in South America there were 42% indentation, to 4,953 on the same basis.