Mack and Volvo Trucks jointly formulated plan to boost North American operations competence
Mack’s head office will be repositioned from Allentown Pennsylvania, to Greensboro in North Carolina under the joint plant formulated by Mack Trucks and Volvo Trucks North America for increasing the efficiency of their North American operations along with focusing on Mack’s truck manufacture to the plant in Macungie, Pennsylvania.
A probable reorganization cost of approximately USD 60 million is expected to incur by Volvo Group in execution of this plan. The reorganization cost is likely to be recorded during the second half of 2008.
This plan is formulated and directed to generate healthier environment for capitalizing on the opportunities occurring in the North American market and to increase and improve efficiency of the North American truck operations.
Shifting Mack’s nerve center and all support jobs- which is expected to occur during 2009, along with product planning, product development and purchasing, from Allentown to Greensboro, North Carolina, relocating assembly of Mack highway vehicles to plant in Macungie, Pennsylvania, reforming of the parts distribution network which is designed to be started in 2009 and to be completed by 2010, are involved in this new plant. All manufacture of Mack and Volvo trucks will be determined to a single factory for each brand after the relocation of Mack highway vehicles plan. An investment of nearly USD 50 million is intended to establish a new engine block machining line at the Hagerstown, Maryland powertrain facility besides this reconstruction plan.
