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Iveco Group Reports Q2 2026 Order Surge
Emiliano Marzoli Iveco Group has reported a 7.3% increase in consolidated revenues for Q2 2026, reaching USD $4.35 billion (€3.76 billion), fueled primarily by higher delivery volumes across Western Europe. Order intake in Europe showed remarkable acceleration: medium- and heavy-duty truck orders jumped +47% year-over-year, while light commercial vehicle (LCV) orders rose 21%.
In the passenger transit sector, IVECO BUS consolidated its position as the #1 European electric bus manufacturer, capturing over 25% market share as bus deliveries grew by 8% with its Annonay plant operating at full capacity. Industrial Activities generated an adjusted EBIT of USD $120.22 million (€104 million), absorbing temporary quality and rework investments from early-season bus production while positioning the Group for a stronger second half of 2026 following the early-July debut of its Model Year 2026 truck range.
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German Market Continues To Struggle
Emiliano Marzoli Data released in early June by the VDMA (German Engineering Federation) shows that Germany’s domestic machinery orders fell 4% to 5% in real terms year-over-year. High manufacturing costs and rigid bureaucracy continue to weigh down the home market. However, the industry is forecasting a 1% production recovery to $15.72 billion USD (€13.7 billion) for the latter half of 2026. This mild turnaround is entirely driven by the rollout of the German federal government’s “Special Assets” (Sondervermögen) off-budget funds, which are finally trickling down into physical orders for climate protection, infrastructure, and defense machinery.
Source: VDMA and VDW Read The Article Read The Article Read The Article
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Volvo Trucks’ Unveils Alternative-Fuel Engine
Emiliano Marzoli Volvo Trucks has unveiled a multi-billion SEK investment of an entirely new 13-liter combustion engine platform. Engineered to meet Europe’s strictest efficiency mandates, these engines are the most fuel-efficient ever produced by the OEM, delivering immediate reductions in CO2 emissions.
Crucially, the platform is built with a “fuel-agnostic” architecture; the base engine is ready to run on renewable diesel (HVO) and bio-gas, and is structurally designed to accommodate future hydrogen internal combustion engine (H2ICE) applications. This platform rollout complements Volvo’s existing battery-electric and fuel-cell programs, cementing their “three-path” strategy toward net-zero emissions by 2040 while continuing to secure top-tier safety marks, including recent five-star Euro NCAP ratings for its regional distribution trucks.
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Volvo Moves into Big Electric Equipment
Emiliano Marzoli Volvo Construction Equipment has officially transitioned the A30 Electric and A40 Electric articulated haulers into serial production at its Braås site in Sweden. Originally unveiled as prototypes at bauma 2025, these machines represent the largest electric articulated haulers currently available on the global market, boasting payloads of 29 and 39 tons, respectively.
Designed for high-utilization environments like large-scale infrastructure projects and mining, the haulers offer up to six hours of operation on a single charge, depending on the application. The first production units are scheduled for delivery to customers in the United Kingdom and Norway this month.
This move solidifies Volvo’s commitment to lead the heavy-duty transition, moving beyond compact machines into the most energy-intensive segments of the construction industry.
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EU Legislation Boosts EU Manufacturing
Emiliano Marzoli On March 4, 2026, the European Commission unveiled the Industrial Accelerator Act (IAA), a cornerstone of the “Clean Industrial Deal” aimed at reclaiming Europe’s manufacturing prowess. The Act sets a bold target to increase manufacturing’s share of EU GDP to 20% by 2035.
To achieve this, it introduces strict “Union origin” (Made in EU) and low-carbon requirements for public procurement and subsidy schemes. For the automotive and heavy machinery sectors, the Act is particularly transformative: starting in 2029, public tenders for electric vehicles (EVs) will require that at least 70% of the vehicle’s non-battery value originates from within the EU, with final assembly and significant battery production also taking place on European soil.
Additionally, the Act creates “Industrial Acceleration Areas” to provide a digital “one-stop-shop” for permitting, drastically reducing the bureaucratic delays that have historically hampered the expansion of European factory sites.
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EU-US Trade Deal Threatens European Production
Emiliano Marzoli The EU-US trade agreement is facing intense criticism from European policymakers and industry leaders who deem it unbalanced, unfair, and a “significant policy mistake.” The persistence of high US tariffs and mounting non-tariff barriers are severely hurting Europe’s export-oriented industrial sector. Experts warn the deal has cornered the EU, increasing its dependency on critical raw materials and semiconductors.
Specifically, US Section 232 tariffs on steel and aluminium derivatives are crippling the machinery sector with complex compliance rules. Failure to comply can trigger punitive tariffs up to 200%, prompting some firms to halt US exports entirely and leading to a sharp drop in sales (e.g., German machinery exports have fallen 18.5%). EU lawmakers are now pushing for amendments, including sunset clauses and safeguards, amid concerns that the current framework is unsustainable.
Source: Euractiv Read The Article
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