During the beginning of 2008 production rates were at levels never reached before, accompanied by a boost in deliveries, which raised expectations that the year would be even better than the record year 2007.
But by late spring the first signs of an upcoming downturn began to be noticeable in the slower pace of order bookings. Renault Trucks had foreseen a possible decline in demand and at mid-year decided to gradually cut production rates and reduce the number of temporary employees during the second half of the year.
During the third and fourth quarter, as the economy was dramatically weakening due to the impact of the global financial crisis, the order book began to decrease, due to low order intake and an increase in cancellations from cautious customers. As a consequence, Renault Trucks started implementing a new streamlined organization and continued working on measures aimed at cutting costs.
Towards the end of the year, additional measures were announced to further adapt to the business to the declining demand. The measures included shutdown days in the production during November and December and the beginning of 2009.