Volvo targets $3B autonomous truck revenue within 5 years

Volvo AB plans to launch driverless operations on U.S. highways within the first fiscal quarter, with revenue from autonomous transportation expected to reach $3 billion within five years, according to Nils Jaeger, head of the company's autonomous unit, speaking at an investor meeting on June 10. Volvo aims to have more than 300 autonomous rigs on highways by the end of 2027. The Swedish manufacturer positions itself as a first mover in scaling the autonomous trucking business, betting that removing drivers from the cab will improve fleet economics and help address chronic driver shortages across the industry. Jaeger said autonomous trucks could double vehicle utilization by operating beyond the legal driving limits of human drivers. That productivity gain matters at a time when fleets struggle to fill seats and manage labor costs. The move also signals growing investor confidence in the sector, underscored by Swedish autonomous startup Einride AB's New York Stock Exchange debut on June 10. Volvo's truck unit faces solid customer demand in North America and Europe, with the company now taking orders for the third and fourth quarters and gradually increasing production capacity. However, rising freight and raw-material costs tied to Middle East tensions will push up cost inflation in the second quarter. CEO Martin Lundstedt said demand for transport and infrastructure solutions will remain strong despite geopolitical uncertainty.