Volvo Trucks announced another layoff for its manufacturing plant in Dublin, Virginia as the Class 8 manufacturing segment continues to falter.
The news follows September layoffs at the plant which currently employs about 2,168 people. Roughly 500 employees will lose their jobs in February as Volvo seeks to adjust to market downturns in truck manufacturing.
“The industry is continuing to manage through a period of excess inventory and reduced demand, and we’ve see that softening particularly in the long-haul segment, which is core for Volvo,” Volvo Trucks spokesman John Mies told Hard Working Trucks. “We have to adjust production to demand, so we will eliminate our second shift. This will unfortunately mean the layoff of about 500 people, effective Feb. 13, 2017.
“We regret having to take this action, but we operate in a cyclical market and we have to adapt to market demand. The total North American truck market will be down by 20 percent, or about 60,000 trucks, this year; and we expect it to drop by another ten percent next year.”
Volvo Trucks cut 300 jobs at its Dublin plant in September. At 1.6-million-squre feet, the New River Valley Assembly Plant is Volvo’s largest truck manufacturing site. All of the company’s Class 8 trucks destined for the North American market are made there.