Volvo, Mack to Streamline U.S. Operations
Affiliated truck makers Mack Trucks and Volvo Trucks North America said Thursday they will concentrate each company’s manufacturing operations into a single U.S. location and will move Mack’s headquarters from Allentown, Pa., to Greensboro, N.C.
The two, both units of Sweden’s Volvo AB, said the moves were part of an “optimization plan” that will cost parent company about $60 million in the second half of this year.
Volvo will transfer assembly of Mack’s highway vehicles from the New River Valley plant in Dublin, Va., where Volvo makes its on-road vehicles, to Macungie, Pa., where Mack makes construction and refuse vehicles.
Volvo also will invest about $50 million to install a new engine block line at its Hagerstown, Md., powertrain facility. That line will complement Volvo’s “global capacity in the engine field, and reduce logistics costs and exposure to currency fluctuations,” the company said.
“After the transfer, all production of Mack and Volvo trucks will be concentrated to a single factory for each brand,” Volvo said.
