Volvo Ceases Sales of Heavy Semi Trucks in Mexico Amid Pandemic

By Dana Cruz Dec 08 2020, 05:49 AM EST

Some Volvo semi trucks won't be seen in Mexico anymore as the Swedish auto manufacturer announced that they would be discontinuing its sale of Class 8 heavy-duty semi-trucks in the country.

Volvo Trunks Mexico, the company's local unit, said in a statement Monday that there was a fallout from the coronavirus pandemic and suffered from changes in the transport industry since.

According to the national statistics agency INEGI, Volvo heavy trucks' wholesale rates went down by devastating 46.2 percent during the first 10 months of 2020.

Alejandro Gonzalez, a communications official with Volvo Group Mexico, clarified with Reuters that only three models of Volvo's Class 8 trucks would be discontinued.

The models have three or more axels that have to be imported from the U.S.

Volvo Ceases Sales of Heavy Semi Trucks in Mexico Amid Pandemic — The Volvo logo is seen during the 83rd Geneva Motor Show on March 6, 2013 in Geneva, Switzerland. Harold Cunningham/Getty Images

Luz Elena Jurado, General Director of Volvo, told Mexican newspaper La Jornada that the decision was a "difficult" one, but they had already taken many economic and market factors into account.

IINEGI data also showed that Volvo Trucks' market share of freight and cargo vehicles in the country was only 1.3 percent through October 2020.

Volvo to Continue 'As Normal'

Gonzales said that other units in Volvo Group Mexico would continue operations "as normal."

This local Volvo units group includes Volvo Buses, Volvo Financial Services, Volvo Construction Equipment and Mack Trucks, a North American brand marketed by the Volvo Group in Mexico.

Volvo produced a significant fleet of trucks in Mexico: Volvo VNR Series, VNL Series, and VAH Series.

To provide support to customers who got a hold of these units, the company promised continued maintenance and spare parts service through their existing dealer network.

Rafael Kisel, president of Volvo Group Mexico, also said all local units would continue their normal operations "in the context of the market in which each one competes."

Heavy-Duty Trucks in Mexico Decline Production

The entire heavy-duty truck production fell back by a significant margin because of the pandemic, reported Freight Waves.

According to INEGI, only 14,249 heavy-duty trucks were made in Mexico in October compared to the 17,576 during the same month in 2019.

This 19 percent decline was disheartening already, but it's actually an improvement from the production during the months earlier, said Miguel Elizalde, president of Mexico's National Association of Producers of Buses, Trucks and Tractors (ANPACT).

"We saw a 5% growth [in October compared to September] in trucks because we are the number one exporter of trucks in the world, but we have a 40% drop in the accumulated [exports] from January to October," Elizalde said.

As for sales, ANPACT also said there were some 2,600 trucks sold in the wholesale market of Mexico in October.

According to Freight Waves, the following companies made these wholesale truck sales during October: