Volvo Group has announced plans to lay off up to 800 employees across its three U.S. plants due to market uncertainties and concerns over tariffs imposed by former U.S. President Trump. The layoffs are expected to occur over the next three months at the Mack Trucks facility in Macungie, Pennsylvania, and two other Volvo Group factories in Dublin, Virginia, and Hagerstown, Maryland.
The Swedish company, which employs nearly 20,000 people in North America, faces challenges from the tariffs that disrupted the global trade system. These tariffs have affected consumer and business confidence, increasing economists' predictions of a U.S. economic downturn.
The planned layoffs reflect the broader automotive and trucking industry's response to tariffs on certain components, which are expected to raise manufacturing costs. A Volvo Group North America spokesperson mentioned that heavy truck orders continue to be negatively impacted by freight demand, potential regulatory changes, and tariff effects. The company regrets this decision but must adjust production to meet the reduced vehicle demand.
