Volvo CE to close Rokbak business amid unsustainable operation

Core Viewpoint - Volvo Construction Equipment (Volvo CE) will phase out its Rokbak articulated hauler division due to unsustainable profitability and a shift in long-term strategy, impacted by rising operational costs and global trade challenges [1][2]. Financial Performance - Rokbak, formerly Terex Trucks, generated revenues of Skr1.0 billion ($107 million) but reported losses in 2025, leading to the decision to halt production of Rokbak-branded vehicles in the second half of 2026 [2]. Customer and Employee Support - Volvo CE president Melker Jernberg expressed gratitude to Rokbak's customers, dealers, and employees, emphasizing the company's commitment to support during the transition [3]. - The company will engage with unions, government representatives, and regulatory authorities to address the implications for affected employees [4]. Future Strategy - Volvo CE plans to redirect resources towards developing alternative hauling solutions within its product portfolio, while the Motherwell facility in Scotland will continue operations focused on Volvo rigid haulers and future product development [4]. Financial Impact of Closure - The planned closure is expected to reduce operating income by approximately Skr0.7 billion ($75 million) in the Construction Equipment segment for the first quarter of 2026, with around Skr0.4 billion ($43 million) related to non-cash items, primarily goodwill impairment [5].