GOTHENBURG, Sweden, June 21,
2023 /PRNewswire/ -- Nova Bus is exiting bus
production in the US market. Consequently, the company has decided
to close its Plattsburgh manufacturing and delivery facility by
2025. Production in North America
will be focused to its Canadian facilities located in Saint-Eustache and Saint-François-du-Lac
(Quebec) and Nova Bus will
continue its successful Canadian business, where it is the market
leader. A restructuring provision of SEK 1.3
billion will negatively impact the Volvo Group's operating
income in the second quarter of 2023.
Securing Nova Bus competitiveness
"The strategic decision to end bus production in the US by 2025
was made after evaluating its profitability, which was experiencing
continued financial losses over the years," says
Anna Westerberg, Chair of the Nova Bus Board of
Directors.
Nova Bus will work closely with employees, customers, and
suppliers as bus operations in the Plattsburgh facility are planned
to continue until the first quarter of 2025. Nova Bus will continue
to support its US customers' parts and service needs.
"Although this strategic decision is a difficult one, by
changing our business model with a focus on Canada, we will improve profitability and
secure our long-term competitiveness," adds Ralph Acs, President of
Nova Bus.
Deploying efforts to provide alternatives for Nova Bus
employees
The decision to end bus production in the US and focus on
Canada will gradually affect full
time positions at Nova Bus, by 2025.
"We will do the utmost to support our employees, many of whom
have been employed for numerous years. We will work together with
our sister Volvo companies, surrounding businesses, local
authorities, and communities to support our people in finding new
employment opportunities," says Ralph Acs.
The extent of the impact this decision will have on the Canadian
organizational structure remains under analysis by Nova Bus and
will continue to be defined as the restructuring takes place over
the next 24 months.
The restructuring will not have a material impact on Volvo Group
revenues. When completed, the restructuring is expected to make the
Nova Bus operation profitable. A restructuring provision of
approximately SEK 1.3 billion will
negatively impact Volvo Group's operating income in the second
quarter of 2023. The provision will be reported in the segment
Group Functions & Other. The expected negative cash flow effect
is estimated to approximately SEK 1.0
billion over the next two years.
Journalists wanting further information, please
contact:
Claes Eliasson, Volvo Group Media
Relations, +46 76 553 72 29
For more information, please visit
volvogroup.com For frequent updates, follow us
on Twitter: @volvogroup
The Volvo Group drives prosperity through transport and
infrastructure solutions, offering trucks, buses, construction
equipment, power solutions for marine and industrial applications,
financing and services that increase our customers' uptime and
productivity. Founded in 1927, the Volvo Group is committed to
shaping the future landscape of sustainable transport and
infrastructure solutions. The Volvo Group is headquartered in
Gothenburg, Sweden, employs more
than 100,000 people and serves customers in almost 190 markets. In
2022, net sales amounted to SEK 473
billion (EUR 45 billion).
Volvo shares are listed on Nasdaq Stockholm.
The following files are available for download:
https://mb.cision.com/Main/39/3791861/2146030.pdf
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SOURCE AB Volvo