Volvo Announces Workforce Reductions

Posted on November 29, 2006

The New River Valley Plant in Dublin, Va., which assembles vehicles for Volvo Trucks North America and Mack Trucks, Inc., have announced plans to reduce employment by about 1000 positions during the first quarter of 2007. “This is a difficult decision, but one that’s unavoidable,” said Jan Stromberg, vice president and general manager of the NRV plant. “We regret the impact this action will have on our people and the New River Valley community, and we are committed to working with the affected employees to assist them in this difficult transition.”

The workforce reductions are the result of an expected industry-wide decline in demand for heavy-duty vehicles, driven primarily by many customers’ desire to delay purchasing trucks equipped with the new emissions technologies necessary to meet the U.S. EPA emissions standards that go into effect on January 1, 2007.

The NRV plant currently employs about 3170 people. The reductions are expected to occur incrementally over the first quarter of 2007, with the first reduction expected in January.