World number two truck maker Volvo said on Tuesday order bookings had fallen "substantially" as the financial crisis hit market demand, prompting it to cut some production in the fourth quarter.

"The group's order intake has dropped substantially in several markets. Demand in Europe has slowed abruptly and the U.S. market has continued to decline from its already low level," the company said in a statement.

"Emerging markets in Eastern Europe and parts of Asia have also deteriorated rapidly, as has South America recently."

The company said it would shut down production on certain days and weeks during the fourth quarter, mainly in December, to adapt to the weaker demand.

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