April 21, 2025 – Volvo Group disclosed on Friday (North American time) that it intends to cut up to 800 positions across three of its facilities within the next three months due to market uncertainties stemming from U.S. government tariff policies.
The job reductions will affect the Mack Trucks plant in Macungie, Pennsylvania; the Dublin facility in Virginia; and the Hagerstown plant in Maryland.
The company stated that the layoffs primarily target its heavy-duty truck production lines, though specific departments were not identified. Volvo currently employs nearly 20,000 people in North America, according to information on its official website.
Since the U.S. government initiated its global product tariff initiative, the automotive manufacturing sector has faced escalating cost pressures. Industry analyses indicate that tariffs on specific components have raised production costs per vehicle by 12% to 15%, with heavy-duty truck orders declining by 18% year-over-year compared to 2024.
A Volvo Group spokesperson emphasized, “The heavy-duty truck order book continues to face headwinds from three primary factors: market uncertainty surrounding freight rates and demand, potential regulatory shifts, and tariff impacts. While we deeply regret having to implement these adjustments, it is essential to align our production capacity with the current downturn in vehicle market demand.”
