Volvo, the world’s second- largest truckmaker, slipped into loss in the fourth quarter and forecast a “very, very steep downturn” in the European truck market this year.

Volvo reported a loss of SKr1.35bn ($166m) in the fourth quarter on sales down 9 per cent year-on-year to SKr76.95bn, a fall of 15 per cent when adjusted for currency movements. The truckmaker cut its 2008 dividend to SKr2 from SKr5.50 in 2007.