UPDATE 1-Volvo Trucks to boost U.S. output, rehire 700

* Says to boost production, rehire 700 at U.S. plant

* Says retail sales through Feb up 47 pct from previous yr

* Shares rise 2.5 percent

(Adds details, quote)

STOCKHOLM, March 30 (Reuters) – World number two truckmaker
Volvo (VOLVb.ST: Quote, Profile, Research) said on Wednesday it would boost production and
rehire 700 workers at one of its U.S. plants to meet healthy
demand, sending its shares higher.

The highly cyclical heavy-duty truck market has picked up
strongly in recent quarters with growth spreading out of
emerging markets in Asia and Latin America to mature markets on
both sides of the Atlantic.

“Customer response to our products… continues to be
extremely positive,” said Ron Huibers, senior vice president for
sales and marketing, said in a statement.

“Combined with the improving economy, this response is
helping us continue the momentum we established with our 2010
market share increase.”

Volvo said through February this year, it had seen a near 50
percent increase in retail sales in the United States and
Canada.

Shares in the truckmaker were up 2.5 percent after the
announcement.

The ramp-up in production and rehiring of staff will take
place in several stages between May 2 and June 13, it said.

Volvo, which sells trucks under the Renault, Mack, UD Trucks
and Eicher brands as well as its own name, said earlier this
month deliveries of its trucks rose 49 percent year-on-year in
February while they were up 65 percent in North America.

(Editing by Elaine Hardcastle)

UPDATE 1-Volvo Trucks to boost U.S. output, rehire 700