Volvo Cutting Jobs for Hundreds of U.S. Employees Due to Tariff Impacts | Carscoops

      Volvo Group North America will be laying off up to 800 employees across three plants in the U.S., including those at Mack Trucks.

      The company cites market uncertainties and tariffs imposed by the U.S. as reasons for the layoffs. Demand for heavy-duty trucks has declined due to these volatility concerns and tariff issues.

      This decision to cut approximately 800 jobs is part of the Volvo Group's efforts to respond to ongoing market uncertainties, largely attributed to the tariff disputes initiated by President Donald Trump.

      These layoffs, representing about 4 percent of the U.S. workforce for the company, will affect three locations: the Mack Trucks plant in Macungie, Pennsylvania, and two facilities in Dublin, Virginia, and Hagerstown, Maryland.

      In a recent email to Reuters, a Volvo Group North America spokesperson indicated that the demand for heavy-duty trucks has been adversely affected by uncertainties surrounding freight rates. They mentioned potential regulatory changes and tariffs as contributing factors to the job reductions, stating, “We regret having to take this action, but we need to align production with reduced demand for our vehicles.”

      The Volvo Group has 16 manufacturing and remanufacturing sites in the U.S., Canada, and Mexico, with sales in this region making up 29 percent of the company’s total sales for 2024.

      Although the Volvo Group produces trucks in the U.S. to potentially mitigate the impact of the 25% tariffs on imported vehicles, it is still subject to tariffs on components sourced from overseas for its trucks.

      Operating under the name AB Volvo, the company is headquartered in Sweden and has owned Mack Trucks since 2000. However, it is no longer directly linked to Volvo Cars, which is owned by the Chinese automaker Geely, which also holds a 4.4 percent stake in the Volvo Group.