Specific Locations and Numbers
Late last week, Volvo Group North America confirmed plans to reduce hundreds of jobs at its Mack Trucks and Volvo Trucks operations in Pennsylvania, Maryland, and Virginia over the next three months. The layoffs are part of a strategic move to “align production with reduced demand.” The affected locations include:
250-350 workers at Mack Trucks’ Lehigh Valley Operations in Macungie, Pennsylvania
50-100 workers at Volvo Group Powertrain Operations in Hagerstown, Maryland
250-350 workers at Volvo Trucks’ New River Valley Operations in Dublin, Virginia

The layoffs at New River Valley (NRV) are in addition to 180 layoffs earlier this year, increasing the total cuts at NRV to approximately 430-530 workers.

Market Conditions and Industry Impact
Kimberly Pupillo, spokesperson for Volvo Trucks, highlighted persistent market challenges, citing ongoing demand issues, regulatory concerns, and tariffs as key factors suppressing heavy-duty truck orders. She stated, “heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs.”

The broader industry environment underscores the severity of these challenges. Earlier this month, ACT Research downgraded its 2025 North American Class 8 truck production forecast from 289,000 to 255,100 units, citing declining demand driven by tariffs, trade tensions, and economic headwinds. Industry analysts estimate that about 45% of all Class 8 trucks for the U.S. and Canadian markets are subject to the 25% U.S. tariff on imports from Canada and Mexico, with a significant portion produced in Mexico and assembled in the U.S.

Geopolitical and Trade Tensions
The ongoing trade war, initiated by the Trump administration, has significantly impacted the auto and trucking sectors. The imposition of a 145% tariff on Chinese imports, coupled with retaliatory tariffs from China, has disrupted global supply chains. Mack Trucks, which relies heavily on Chinese parts—producing at least 13% of its components—has been particularly affected.

This trade environment has also resulted in layoffs in other sectors. For example, Stellantis recently announced 900 layoffs in Detroit and Kokomo, Indiana, following the temporary shutdown of plants in Canada and Mexico due to tariffs and supply chain disruptions.

Looking Ahead
These developments highlight the ongoing economic and geopolitical challenges facing the auto and trucking industries. Volvo’s layoffs reflect a broader industry contraction driven by trade tensions, regulatory uncertainty, and declining demand. Until trade conditions improve and demand stabilizes, further layoffs and market volatility are likely.