Volvo sees profits rise due to rising prices

The Volvo Group (Volvo Cars, Renault Trucks, Mack) publishes its results for the first quarter of this year. The manufacturer recorded a net profit of up to 9.9%. The group explains this increase to the increase in its prices, “against a stable sales situation”.

“Demand remained normal in the first quarter at good levels in many markets after record demand in 2023,” said Martin Lundstedt, president and CEO. Net profit reached 14.1 billion kroner (1.2 billion euro) during the quarter, compared to 12.9 billion a year earlier on stable sales of 131.2 billion SEK (11.3 billion euro).

“The price charged has continued to increase, mainly due to the price increases we have implemented step by step,” added the leader of the Swedish group.

Shipments decreased in the first quarter: 55,470 trucks, which represents a 10% drop. Volvo delivered 31,954 trucks (-11%), Renault Trucks 15,836 (-9%). Mack, 7,467 trucks (-6%). Total order intake also decreased by 19%, to 48,701 trucks.

The group explains that it has reduced its production capacity in Europe but, on the other hand, the delivery and consumption of the order has “significantly increased” in South America (+19%) and in Brazil. They increased by 2% in North America where the group is located.

“We also continue to grow our presence in North America and have decided to increase our capacity by building a new taxi and final assembly plant for Volvo Trucks and Mack Trucks in Mexico. We expect the plant to be operational in 2026 and will greatly support our main locations in Virginia and Pennsylvania in the United States,” said Martin Lundstedt.

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