Core Insights - Volvo Group is facing significant challenges in its North American market due to trade tensions and a freight slowdown, impacting its outlook [3] - The company will incur a new 25% tariff on imports of heavy-duty and medium-duty trucks and parts starting November 1, adding to existing tariff-related costs of 500 million SEK in Q3 [3] - Volvo has reduced its 2025 sales outlook in North America to 265,000 trucks, a decrease of 10,000 units, due to new tariffs and weak demand [7] Market Conditions - The freight recession is negatively affecting demand, and new tariffs are expected to further slow orders into 2026 [6] - Customers are currently in a "wait-and-see mode" due to high uncertainty in the market [7] Production and Capacity - Volvo Group has a complete U.S. footprint for North American trucks but is preparing for potential tariff agreements between the U.S. and Mexico [4] - The company acknowledges a structural undercapacity in North America and recognizes the need to add capacity for both North and South American markets [4] - Despite the need for increased capacity, it is unlikely that Volvo will expand production in the near term due to ongoing demand challenges [6] Manufacturing Facilities - Volvo Trucks operates an assembly plant in Virginia and additional manufacturing facilities in Maryland and Virginia, along with seven parts distribution centers [5] - Mack Truck, a sister brand, shares a powertrain assembly facility in Maryland and has a new plant in Pennsylvania that recently began manufacturing the Mack Pioneer [5]