Volvo boss sees European truck market down 40%

STOCKHOLM: Sales of heavy trucks in Europe are set to drop 40 per cent in 2009, but demand globally is expected to recover before the end of the year, the head of Swedish truck maker Volvo said on Tuesday.

"We believe in a stronger second half of the year," chief executive Leif Johansson told Dow Jones Newswires on Tuesday.

He believes 180,000-200,000 trucks will be sold in Europe this year, down from 318,700 units in 2008.

His comments came the same day as Volvo reported that its truck deliveries in February fell 51 per cent globally and 63 per cent in Europe from a year earlier.

"It's an incredibly weak start to the year," he said, blaming the credit crisis for the decline.

"It's still difficult for our customers, and their customers, to get financing for products," he said. "It's the frozen-up financial system that's hurting us so bad."