The Mack truck manufacturing plant in Lower Macungie, Pa. (April Gamiz/The Morning Call/TCA)
Mack Trucks plans to lay off 250 to 350 workers at its Lehigh Valley Operations plant in Pennsylvania, the company confirmed April 18.
The Greensboro, N.C.-based truck manufacturer confirmed earlier reports about the layoffs. The decision was made in the face of economic and regulatory uncertainty that has put downward pressure on orders. The layoffs are expected to occur over the next three months.
“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,” Kimberly Pupillo, director of public relations at Mack Trucks, said in a statement provided to Transport Topics. “Yesterday we informed our employees that this unfortunately means we’ll have to lay off 250-350 people at LVO over the next 90 days. We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
President Donald Trump has made tariffs a major component of his plan to remedy what he feels are unfair trade practices by other countries. But pushback from economists over their harm domestically, and numerous delays, has created uncertainty that threatens to slow investments and economic growth, such as carriers investing in new equipment like trucks.
“Due to the market being in decline, there will be a rate and line reduction,” Tim Hertzog, shop chairman for United Auto Workers Local 677, said in a letter to union members April 17. “I have heard all the same rumors you guys have heard. This is the first time I have had an official word from the company that there will be a layoff. I do not know the scope of it yet; we have things to work through.”
Mack’s new Pioneer will be built at LVO. Click here for story. (Michael Freeze/Transport Topics)
Hertzog also confirmed that he met with company officials earlier that day. He stressed the importance of not discussing the rumors until he could get confirmation.
“Once again, American workers are being sacrificed at the altar of political theater,” state Rep. Josh Siegel said in response. “The tariffs — erratic, broad and poorly targeted — are crushing core U.S. industries like trucking and manufacturing. Supply chains are snarled, costs are soaring, and confidence among employers is collapsing. Communities like the Lehigh Valley, built on generations of hard work and industrial pride, are now being asked to carry the burden of this administration’s incompetence.”
Siegel stressed that the jobs that will be lost are good-paying union jobs important to the local community. He also called on other state lawmakers to stand with union officials to seek congressional action and end these economic policies.
The news comes on the heels of other announced layoffs across the broader family of companies under the Volvo Group umbrella. Volvo Trucks North America has been working to reduce its workforce by as many as 350 staff at its assembly plant in Dublin, Va. The company confirmed this was due to reduced demand, particularly in the core longhaul segment.
The company has also passed the critical phase for the ramp-up of the new VNL model. Volvo Group laid off a further 40 employees at its Hagerstown, Md., powertrain plant March 21.
