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Volvo Group North America will lay off 550 to 800 employees, a company spokesperson confirmed to the Daily Voice on Friday, April 18. The layoffs will happen at plants in Maryland, Pennsylvania, and Virginia.
The Swedish automaker cited the need to adjust to worsening economic conditions.
"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 spokesperson said.
Between 250 and 350 employees will lose their jobs at Mack Trucks Lehigh Valley Operations. The Macungie, PA, facility employs about 3,050 workers.
Another 250 to 350 jobs are being cut at Volvo Trucks New River Valley Operations. The plant in Dublin, VA, has a workforce of around 3,400.
A smaller round of 50 to 100 layoffs is hitting Volvo Group Powertrain Operations. About 1,800 people work at the Hagerstown, MD, facility.
Volvo's layoffs come amid rising fears about the state of auto manufacturing under Trump's sweeping tariffs. Trump has imposed 25% duties on imported cars, light trucks, aluminum, and steel, along with a 145% tariff on Chinese goods.
Vehicle data company Cox Automotive has warned that panic buying has dramatically lowered the US supply of new and used vehicles. New-vehicle stock fell to 2.69 million units as of Tuesday, April 1, down 10.2% from the start of March.
Volvo said the layoffs were fueled by fewer purchases of its cars and trucks.
"We regret having to take this action, but we need to align production with reduced demand for our vehicles," the spokesperson said.
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Other automakers have cut North American jobs since Trump's "liberation day" tariff announcement. Stellantis – the company behind Chrysler, Dodge, and Jeep – has temporarily laid off about 900 US workers while halting production at some Canadian and Mexican plants, CNN reported.
General Motors said about 200 temporary layoffs have happened at an all-electric vehicle plant in Detroit "to align with market dynamics," according to Reuters. Another GM plant in Ontario will pause manufacturing, with a union leader saying there will be an "indefinite layoff of nearly 500 workers" once production resumes, the CBC reported.
Volvo's website said it employs more than 19,600 workers in North America.
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