Early Fallout From ‘07

Posted on October 21, 2006

In yet another sign that the commercial truck business is in for some rough times next year, Mack Trucks Inc. has announced plans to reduce employment over the next six months by about 450 positions at its Macungie, Pa., truck assembly plant. Mack said the move is in response to an anticipated market downturn caused by reduced industry-wide demand for vehicles compliant with the EPA’s 2007 emissions standards, which take effect. Jan. 1.

“We very much regret the impact this action will have on our employees, their families, and our local community,” said Mack President and CEO Paul L. Vikner. “But these reductions are essential to the responsible management of our business through the downturn. Right now, our focus is on developing our plans to assist affected employees.”

The Macungie plant currently employs about 1040 people. The first reductions will take effect before the end of this year, with additional cuts expected in the first half of 2007. Employees were informed of the plans. Tthe company said it will now begin discussions with the appropriate state and local agencies regarding efforts to assist those who will be affected.