We've shared with you in the past that South America represents our highest-margin region of the world for the Commercial Truck segment. The long-term improvements we executed this year in the form of pricing and manufacturing footprint rationalization have helped us to offset the impacts of the economic slowdowns in South America and Europe. This regional shift would have been significantly more impactful prior to the implementation of these actions.The table in the bottom right indicates the status of our forecast for changes in Commercial Truck production volumes. At this time, Commercial Truck volumes in North America and Europe remain in line with our prior guidance. We do see some downside risk in North America, with modest upside potential in Europe. While North America remains stable, lower order intake may affect the remainder of fiscal year 2012 into 2013. We are maintaining our forecast with an increase of approximately 25% in truck volumes in North America and a decrease of 10% for Europe.
Meritor Management Discusses Q3 2012 Results - Earnings Call Transcript
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