As many as 350 workers have been laid off in early April at Volvo Vans North America’s New River Valley meeting plant in Dublin, Va. (Volvo Group)
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Volvo Group’s North American truck operations are set to put off about 1,000 workers within the coming weeks, CEO Martin Lundstedt stated April 23.
Lundstedt dropped the bombshell within the ultimate moments of the truck and bus maker’s first quarter of 2025 earnings name, revealing a further 200 or so jobs could be minimize at Volvo Vans North America and Mack Vans as a consequence of weak demand and financial uncertainty.
Round 800 workers have been beforehand anticipated to be laid off at Volvo Group’s manufacturing services in Virginia, Pennsylvania and Maryland.
As many as 350 workers have been laid off in early April at Volvo Vans North America’s New River Valley meeting plant in Dublin, Va., the biggest Volvo Group manufacturing plant on the planet.
“This is because of decreased demand, notably in our core longhaul section, and since we at the moment are previous the crucial part within the ramp-up of our all-new VNL mannequin,” a mum or dad firm spokeswoman advised Transport Subjects on the time.
An extra 40 workers at Volvo Group’s Hagerstown, Md., powertrain plant have been additionally being let go. The workers members have been a part of the workforce that manufactures engines, transmissions and axles for VTNA and Mack.
Information emerged in mid-April that as many as 350 extra workers at Mack’s Lehigh Valley Operations meeting plant would even be given their discover. Employees members have been knowledgeable April 17 the cuts would happen over the next 90 days, TT realized.
A Volvo Group North America spokeswoman stated April 23 the corporate was not offering any additional breakdown on the cuts when contacted by TT.
Volvo Group minimize its 2025 North American heavy-duty truck demand forecast on account of the subdued urge for food amongst clients. (Volvo Group)
Lundstedt conceded throughout the earnings name with analysts that Q1 had been eventful, notably as the continuing freight recession in North America and tariffs imposed by the Trump administration crimped demand for on-highway and vocational vehicles alike.
Volvo Group minimize its 2025 North American heavy-duty truck demand forecast on account of the subdued urge for food amongst clients. The Swedish firm now expects demand within the U.S., Canada and Mexico to complete 275,000 vehicles from 300,000 vehicles beforehand.
Lundstedt — who together with Chief Monetary Officer Mats Backman was carrying a Mack bulldog lapel pin — stated Volvo minimize its forecast due to the impression of the tariffs and expectations of the so-called “pre-buy” evaporating.
Carriers have been anticipated to ramp up buying of mannequin 12 months 2025 and 2026 vehicles forward of the arrival of stricter emissions laws, which was colloquially referred to as the “pre-buy.”
Environmental Safety Company Administrator Lee Zeldin on March 12 stated the Greenhouse Fuel Emissions Requirements for Heavy-Obligation Autos could be reconsidered. EPA additionally stated the 2022 Heavy-Obligation Nitrogen Oxides (NOx) rule could be re-evaluated.
North American clients ordered 10,217 VTNA and Mack vehicles in Q1, up 6% in contrast with 9,620 within the first quarter of 2024, Volvo Group stated in its earnings assertion.
VTNA orders within the area slumped 33% to 4,621 from 6,909 a 12 months earlier. Mack orders jumped 108% in Q1 to five,851 from 2,685 within the year-ago interval.
Gross sales by the 2 divisions in North America decreased by 5% to 14,315 vehicles from 15,056. VTNA gross sales in North America fell 17% to six,510 from 7,881. Mack gross sales within the area totaled 7,684 vehicles, up 7% from 7,153 a 12 months earlier.
VTNA’s heavy-duty truck market share fell to 7.2% from 9.1% a 12 months earlier, hampered by adjustments associated to the introduction of the redesigned flagship VNL on-highway tractor whereas Mack’s market share rose to six.9% from 5.3% on the again of an improved provide chain and good vocational demand, the mum or dad group stated.
Serial manufacturing of the redesigned VNL tractor on the 2.3 million-square-foot New River Valley plant started in early October. VTNA opened the order guide for the VNL in April 2024.
New River Valley underwent $400 million in upgrades forward of the beginning of manufacturing of the revamped VNL, which was launched in January 2024.
VTNA unveiled an overhaul of its VNR regional haul tractor March 10, which will even be assembled at New River Valley.
Mack debuted a brand new flagship tractor, the Pioneer, on April 8. (Mack Vans)
Mack can also be within the midst of revamping its on-highway portfolio. Mack debuted a brand new flagship tractor, the Pioneer, on April 8 a brief distance from the place the corporate was based. The earlier longhaul flagship, the Anthem, might be retained.
Presently, the longhaul, on-highway section was what Lundstedt termed throughout the analyst name “in actuality, an virtually absent sort of section for Mack.”
Mack held round 1.2%-1.6% of the longhaul section at current, the mum or dad firm’s high government stated, because the competitors was too sizzling for the Anthem, with consumers restricted to Mack loyalists.
“We have now excessive however real looking ambitions [for the Pioneer],” stated Lundstedt, suggesting 5%-6% of the longhaul section was probably, even with out sacrificing the tractor’s value level and Volvo Group margins.
“Mack is again in the case of longhaul,” he stated, including that rather a lot had been realized from the VNL launch.
Volvo Group posted a revenue of $1.03 billion in the newest three-month interval, down about 29% in contrast with $1.45 billion within the year-ago quarter. Volvo reviews in Swedish krona and conversions have been appropriate as of April 23.
