Tariffs blamed for hundreds of layoffs at Volvo truck plants
Published in Business News
Up to 100 workers at Volvo Group’s engine and transmission plant in Hagerstown will be part of hundreds of layoffs in three states amid market uncertainty and recent tariffs.
Volvo Group, a maker of heavy-duty trucks, plans to lay off as many as 800 people at facilities in Maryland, Pennsylvania and Virginia, a spokesman said Tuesday.
“Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes and the impact of tariffs,” John Mies, the spokesman, said in an email to The Baltimore Sun.
President Donald Trump announced multi-country tariffs at the start of April, then subsequently paused some. Since then, stock markets have slumped, consumers and small business owners have braced for price hikes, and parts and economists have warned of a global economic slowdown.
Trump has said the tariffs are part of his strategy to protect U.S. industry from unfair foreign competition.
Volvo Group employees were notified of layoffs Thursday, Mies said. Layoffs will take place over the next three months.
Volvo Group plans to lay off between 50 to 100 people at its powertrain operations in Hagerstown in Washington County. The plant makes engines and transmissions for Volvo and Mack truck brands and employs about 1,800 people.
The manufacturer also will cut between 250 to 350 jobs at its Mack Trucks Lehigh Valley plant in Macungie, Pennsylvania, a suburb of Allentown, where heavy-duty Mack trucks are produced.
It plans another 250 to 350 layoffs at Volvo Trucks New River Valley Operations in Dublin, Virginia, where heavy-duty Volvo trucks are made.
Mies said the manufacturer is taking steps to align production with reduced demand for its vehicles.
Volvo Group, which owns owns Mack Trucks, has made major investments in recent years in each of the plants, all of which will remain open and “an essential part of our North American growth strategy,” he said.
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