Volvo Will Take Q3 Charge to End UD Truck Production for U.S.

Volvo Group said it will take a third-quarter restructuring charge of about $91.9 million for a cost reduction program in Japan and to end production in Japan of UD Trucks for the U.S. market.

The charge will pay for a program to cut costs by 10% in Japan, Volvo said. Production of UD’s line of cabover trucks destined for the United States will shut down by the end of the year.

Dealers will continue to take orders for the Class 5-7 trucks through the middle of October, said John Mies, vice president of communications for Volvo Trucks. UD is part of the Volvo Group, which also includes Mack Trucks and Renault Trucks.

While UD Trucks is one of the largest truck makers in Japan and some Southeast Asian markets, it has struggled to gain traction in the United States and has less than 1% of the U.S. market.