As demand for trucks declines, Mack Trucks plans to consolidate production of its entire line of on-highway vehicles to its plant in Macungie, Pennsylvania.
Mack plans to make the transfer between September and November this year. The company will gradually shut down production in its North River Valley plant in Dublin, Virginia, while increasing production in the Macungie plant. The North River Valley plant will continue to produce Volvo Trucks North America’s entire product range.
Mack announced the consolidation plan in August 2008 when the company made complete restructuring plans. Originally, Mack planned the transition in the fourth quarter of 2008. Mack says labor contract negotiations with the United Auto Workers (UAW) delayed the move. Mack reached a 40-month agreement with UAW at the end of May, allowing the company to move forward as planned.
Also in the 2008 restructuring plan was the creation of nearly 200 jobs at the Macungie plant. Mack says current market conditions will result in the company reducing the number of down weeks instead of creating new jobs.
While employment at the Macungie plant is unlikely to change, employment at the New River Valley plant is expected to decline. There are approximately 1,200 personnel currently employed at the plant. According to Mack, it is too soon to tell how many employees will be cut.