Volvo Q3 North American Truck Sales Drop 20% .What It Means for the Trucking Industry.

Volvo Group’s latest earnings report revealed a significant 20% decline in North American truck sales in the third quarter of 2025 compared with the same period last year. The slump from 12,026 vehicles to 9,622 units sold, reflects deepening challenges in the U.S. and Canadian heavy-duty truck markets and underscores broader economic headwinds for fleets and manufacturers alike.

What Drove the Sales Drop?

Several key factors contributed to the downturn:

• Prolonged Freight Recession: Reduced freight volumes and pricing pressure in the North American long-haul market have dampened demand for new Class 8 trucks, with carriers deferring purchases amid tighter revenue environments.

  
  

• Customer Caution: Carriers are increasingly cautious about investing in new equipment while freight demand remains soft and economic uncertainty persists.

  
  

• Regulatory & Tariff Concerns: Uncertainty surrounding upcoming 2027 EPA emissions standards and ongoing tariff implications has further restrained buying enthusiasm, according to Volvo’s commentary.

Orders vs. Deliveries: A Mixed Signal

Interestingly, while deliveries slid, order intake climbed modestly, rising about 10% overall in Q3, due in part to weaker comparison figures from the previous year. This suggests that interest hasn’t completely evaporated, but actual purchases and fleet replacements are still being delayed.

Broader Industry Context

Volvo’s experience isn’t unique. Other global truck makers are also feeling the pinch from softer North American markets. For example, Daimler Truck reported an 8% drop in total sales for 2025 largely driven by weak U.S. demand.

This pattern aligns with broader industry indicators that show lower freight activity, extended delivery cycles, and cautious ordering behavior by fleets across the board. Some analysts even forecast that the heavy-duty market could remain under pressure into 2026.

What This Means for Fleets and Manufacturers

Here are the key takeaways from Volvo’s Q3 sales decline:

1. Fleets Are Prioritizing Cost & Utilization

Carriers are maximizing the productivity of existing trucks rather than accelerating replacement cycles. When freight rates are weak, operators squeeze as much life as possible out of their current assets.

2. Regulatory & Policy Uncertainty Shapes Buying Decisions

Potential shifts in emissions rules and tariff impacts are prompting fleets to delay capital investments until there’s more clarity, particularly around clean-diesel versus alternative powertrains.

3. Service & Parts Business Becomes Ever More Important

With new truck sales softening, revenue from service, parts, and aftermarket support is becoming a key stabilizing factor for OEMs like Volvo, a trend also highlighted in their earnings commentary.

4. Innovation Remains a Long-Term DifferentiatorVolvo and other manufacturers continue to push new models and technologies, such as the all-new Volvo VNR regional hauler and electrification efforts, which could help reignite demand once economic conditions improve.

Why Kodiak, Bosch, and Self-Driving Tech Are Reshaping U.S. Trucking

Autonomous semi trucks are no longer just a Silicon Valley dream, they are rolling down America’s highways and shaking up the entire trucking world. Big names like Kodiak Robotics, Bosch, Aurora Innovation, Volvo, and Daimler Truck are turning self-driving technology into real-world freight machines that could redefine how cargo moves from coast to coast.

This is not just another tech trend. This is a once-in-a-generation shift in how trucking works.

Kodiak Robotics made waves by teaming up with Bosch, one of the biggest automotive technology suppliers on the planet. Bosch brings the hardware, sensors, braking systems, computers while Kodiak provides the artificial intelligence that tells the truck how to drive. Together, they’re building autonomous systems designed not just for testing, but for real commercial freight hauling.

In simple terms: these trucks aren’t science projects anymore, they’re being built for business.

Companies like Aurora Innovation and TuSimple are also racing to dominate the self-driving highway. Their focus is on long-haul freight routes where traffic is predictable and lanes are clearly marked. That’s where autonomous trucks shine. These systems use cameras, radar, lidar, and AI to keep the truck in its lane, control speed, and avoid danger all without a human touching the wheel.

And here’s the big reason everyone is paying attention: there aren’t enough drivers.

The U.S. trucking industry is facing a massive driver shortage. Drivers are aging out, turnover is high, and long-haul routes are hard to fill. Autonomous technology is being sold as the pressure valve, a way to keep freight moving even when human drivers are in short supply. Self-driving trucks don’t need sleep, don’t call in sick, and don’t quit.

That’s a game-changer.

Safety is another huge selling point. Manufacturers like Volvo, Daimler, and PACCAR are combining autonomous software with advanced safety systems such as automatic emergency braking, lane-keeping, blind-spot monitoring, and collision avoidance. The idea is simple: technology doesn’t get distracted, tired, or reckless. Supporters say that could mean fewer crashes and fewer lives lost on the road.

For now, the industry is using a hub-to-hub model. A self-driving truck handles the long highway stretch, then a human driver takes over near cities, docks, and tight delivery zones. This allows fleets to use autonomy while staying within today’s rules, a smart middle ground that’s already being tested across the U.S.

Whether truckers love it or fear it, one thing is clear: autonomous trucking isn’t slowing down. With Kodiak Robotics, Bosch, Aurora, Volvo, and Daimler pouring money and engineering into this technology, self-driving semis are quickly becoming part of the American freight system.

California Sues Trump Administration over terminated transportation grants.

In a major legal clash with the federal government, California has filed a lawsuit against the Trump administration after more than $33 million in federal transportation grant money was abruptly withheld from the state’s commercial vehicle safety programs.

Why the Funding Was Withheld

The U.S. Department of Transportation, led by Secretary Sean Duffy, terminated California’s awards for commercial vehicle safety grants in October, claiming the state failed to enforce new federal requirements, particularly an English proficiency standard for truck drivers. According to federal officials, enforcing English language ability among commercial drivers is critical for safety on America’s highways.

This proposal reversal added fuel to broader federal policy changes targeting licensing and driver eligibility rules for commercial drivers. In parallel, the Trump administration has also issued stricter limits on commercial driver licenses issued to non-U.S. citizens and paused worker visas for truck drivers.

California’s Argument

The Golden State insists that its enforcement standards already comply with federal law and that the decision to pull funds was “arbitrary and capricious.” California’s lawsuit claims the funding loss will impede key truck safety efforts like:

• Roadside inspections

• Safety audits of trucking companies

• Public outreach and education programs

  
  

The state also noted that California-licensed truckers have a much lower fatal accident rate than the national average, a central point in arguing that its highway safety programs are effective and in compliance.

Stakeholder Impact

For the trucking industry, this lawsuit highlights how federal grant conditions and federal enforcement policies can directly influence on-the-ground safety programs. Grants like these aren’t just “extra money” they fund crucial highway safety operations in one of the nation’s busiest freight corridors.

Small and large fleets alike depend on well-run state commercial vehicle safety enforcement. Without federal reimbursement support, California may have to shoulder more of the cost for inspections and compliance efforts, or scale back programs affecting truck traffic, enforcement staff, and training initiatives.

The Bigger Picture

This legal fight is part of a broader political and regulatory tug-of-war between states and the federal government over transportation policy, safety standards, and immigration-related licensing issues. Similar threats to withhold highway funds have been made to other states over commercial driver licensing practices showing this could be more than a one-off dispute.

Whether the courts uphold California’s challenge could have major implications for state-run safety programs and how federal transportation policy is enforced nationwide.