In conjunction with this restructuring, an investment of about USD 50 million is planned to install a new engine block machining line at the Hagerstown, Maryland powertrain facility. This line would complement the Group’s global capacity in the engine field, and reduce logistics costs and exposure to currency fluctuations.
The transfer of Mack’s vehicle production from New River Valley is planned for the fourth quarter of 2008. The movement of the Mack headquarters and support functions is estimated to take place over the course of 2009, while the consolidation of product development and purchasing will take place in 2010. Restructuring of the parts distribution network will begin in 2009 and is expected to be completed in full by the end of 2010. The new Hagerstown block line is planned to be operational by the end of 2010.
The impact on employees represented by the United Auto Workers (UAW) will be subject to negotiations with the union; however, the company intends to offer all affected employees positions in other locations. Mack and the UAW have agreed that negotiations on a new labor contract will resume on September 2, 2008.
August 14, 2008
For more information, please contact:
Mårten Wikforss, +46 31 66 11 27 or +46 705 59 11 49
Volvo Truck Corporation
Tommy Kohle, +46 31 66 65 17 or +46 706 76 65 17
John Mies, +1 336 393 43 00 or +1 336 255 25 21