More ’07 Woes: Volvo Announces Workforce Reductions

Posted on October 30, 2006

Because of an expected industry-wide decline in demand for heavy-duty trucks equipped with new technology necessary to meet the stringent U.S. emissions standards going into effect on January 1, 2007, Volvo’s North American powertrain facility in Hagerstown, Md., expects to reduce employment in the first half of 2007 by about 600 positions.

“While these reductions are necessary for the responsible management of our operations through the downturn, we regret the impact they will have on our employees, their families, and the Washington County community,” said Sten-Åke Aronsson, senior vice president of Volvo Powertrain North America. “We are committed to working with the affected employees to assist them in this difficult transition.”

The Hagerstown facility currently employs about 1,770 people. The reductions are expected to be made incrementally over the first half of 2007. Employees were informed of the expected number of reductions today. Additional employee meetings will be scheduled in the coming weeks to discuss more details and to provide information on the assistance that the organization and the appropriate agencies will provide to affected employees.

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