Published: 29/04/10
The recent financial results for AB Volvo revealed that net sales fell by 31%. Because Volvo is heavily involved in the manufacture of HGVs, these lower sales are a direct result of higher costs in petrol and decreased demand for products, which directly affects the haulage and logistics markets.
The insurance industry that specialises in HGV insurance in the UK has felt the decrease in demand for the haulage and logistics markets that purchase these vehicles from Volvo and subsequently purchase their insurance.
Like the automobile industry, the recession has affected HGV manufacturing and there are many haulage and logistics firms that aren’t expected to survive this most recent business downturn. Investing in new HGV vehicles is not a priority for these companies and it has shown a ripple effect that has affected Volvo’s financial results and has forced cutbacks to take place. This is in the face of General Motors decision to exit the Saab line, which is a close competitor of Volvo and has some similarities, when it comes to the effects this has had on the industries associated with them, in general.
The HGV insurance industry is no different. While insurers are working with the haulage and logistics companies to find cost cutting assistance when possible, they are victims of the economy, as well. Recent events in the news have affected businesses throughout the world and those in the UK are not immune from the recent economic problems.
When it comes to the HGV vehicle market, there isn’t much relief in sight for a quick turnaround. Because it is affected by the haulage and logistics markets that are seeing further decreases in demand, it is expected that the financial results will continue on the downward trend for the near future, much to the dismay of those in the insurance industry that specialise in HGVs.
Flint Insurance are HGV and Truck Insurance specialists. Get an instant online hgv insurance quote or call 0800 021 4503 for further details.
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