Scania puts brakes on production

Swedish lorry maker Scania is to cut back production in Europe due to weakening demand.

It will reduce output by 10 to 15 percent from November compared with the end of the third quarter.

After a recent improvement in sales, debt problems in Europe and an anaemic recovery in the United States are starting to have an effect on orders.

Scania’s share slipped as did those of other truck makers.

“It is a matter of deceleration in Europe, but also a slower pace of order bookings from the Middle East,” said Martin Lundstedt, Executive Vice President in charge of Scania’s sales and marketing.

The company, however, said demand in Latin America had stabilised at a high level.

Scania does the bulk of its business in Europe, South America and Asia.

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