Saturday, April 19, 2025 - Volvo Group has announced plans to lay off up to 800 workers at three of its U.S. facilities over the next three months, citing ongoing market uncertainty and declining demand exacerbated by tariffs introduced under the administration of former President Donald Trump. The affected locations include the Mack Trucks plant in Macungie, Pennsylvania, as well as Volvo Group sites in Dublin, Virginia, and Hagerstown, Maryland.
In a statement on Friday, April 18, Volvo Group North
America confirmed that between 550 and 800 employees would be impacted. The
company, a subsidiary of Sweden’s AB Volvo, employs nearly 20,000 people across
North America.
The layoffs come amid wider turmoil in the automotive and
manufacturing sectors, as shifting U.S. trade policy and a series of tariffs
continue to drive up production costs. Economists have pointed to the
uncertainty surrounding Trump's trade strategy as a factor undermining both
business and consumer confidence, with concerns mounting over a potential
economic slowdown or recession.
According to Volvo, the company is grappling with a decline
in heavy-duty truck orders, driven by instability in freight rates, anticipated
regulatory changes, and the growing financial burden of tariffs. “We regret
having to take this action, but we need to align production with reduced demand
for our vehicles,” a company spokesperson stated in an email quoted by Reuters.
Volvo’s announcement marks another blow to an industry
already navigating a complex web of supply chain challenges and fluctuating
market conditions, with other manufacturers also warning of potential cost
hikes and disruptions tied to global trade disputes.
