- The Volvo Group will be laying off up to 800 workers from three US-based plants.
- The company blames market uncertainties and the tariffs imposed by the US.
- Orders for heavy-duty trucks are down, influenced by volatility and tariff concerns.
The Volvo Group is getting ready to lay off approximately 800 workers across its U.S. operations. According to a company spokesperson, these layoffs are a direct result of the ongoing market uncertainties, many of which have been sparked by President Donald Trump’s relentless tariff war.
The layoffs will affect approximately 4 percent of the company’s US-based workforce and will take place at three of Volvo Group’s US factories, including its Mack Trucks site in Macungie, Pennsylvania, as well as two Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland.
The Latest In Tariff-Related Chaos
It’s the latest news from an industry that is reeling from a spate of tariffs, which has seen Ford freeze its US exports to China, Nissan cut production of its best-selling Rogue, Lotus halt sales in America, and Mitsubishi halt all deliveries to US dealers.
Read: The Most American-Made Cars Least Affected By Trump’s Sweeping Tariffs
In an email to Reuters, a spokesperson for the Volvo Group North America stated that orders for heavy-duty trucks have been negatively impacted by market uncertainty regarding freight rates and demand.
The spokesperson cited possible regulatory changes, as well as the impact of tariffs, as other reasons for the job cuts. “We regret having to take this action, but we need to align production with reduced demand for our vehicles,” said the statement.
A Blow To North American Truck Operations
The Volvo Group operates 16 manufacturing and remanufacturing facilities in the US, Canada, and Mexico. Sales from the region accounted for 29 percent of the company’s 2024 sales.
While the Volvo Group manufactures trucks at home in the US, which may help avoid the blanket 25% tariffs on imported vehicles, it doesn’t shield their operations from tariffs on parts manufactured overseas and used in their trucks.
The Volvo Group, also known as AB Volvo, has its headquarters in Sweden and has owned Mack Trucks since 2000. However, the Volvo Group is no longer directly affiliated with Volvo Cars, which is owned by Chinese automaker Geely. Geely also holds a 4.4 percent stake in the Volvo Group.
