World number two truckmaker Volvo (VOLVb.ST) 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.
The Sydney father who accidentally drove over his two-year-old daughter was driving a Volvo station wagon.
"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.
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