Volvo Plant Layoffs Deeper Than Expected

April 20, 2008

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Volvo Trucks North America will cut 1,100 jobs at its Dublin, VIrginia plant,
a reduction of more than third of the jobs at the plant and significantly more than was previously anticipated, according to the Roanoke Times.

Volvo cited a weak truck market, soft economy and increasing fuel prices as reasons for the increased layoffs. Volvo had previously announced it would layoff 650 at the plant at the end of January. The layoffs were postponed due to a six-week strike at the plant, the Times reported.

Volvo spokesperson, Jim McNamara, told the Times once the workers returned from the strike, the company faced a temporarily higher build rate. Once the company catches up, then the layoffs will occur, beginning May 12.

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