Cumberland Times-News

Local News

October 19, 2013

Truck-, bus-maker adding up to 140 jobs in Hagerstown

Volvo making $30 million investment

HAGERSTOWN — Swedish truck- and bus-maker AB Volvo said Friday that it will add up to 140 full-time jobs at its Hagerstown engine-and-transmission plant by 2015 as part of a global efficiency program announced last month.

The $30 million investment will enable Volvo to produce heavy-duty drive axles at the plant in Western Maryland instead of buying them from Detroit-based American Axle and Manufacturing Inc., spokesman John Mies said. He said AAM makes the axles in Lancaster, Pa.

Volvo’s Hagerstown plant, 70 miles west of Baltimore, produces powertrains for Mack, Volvo and Prevost trucks and buses — all Volvo brands. It is Washington County’s fourth-largest private employer, with 1,340 full-time workers, according to state and local economic development agencies.

The company will get a $4 million conditional loan from the state and a $200,000 conditional loan from the county, according to the Maryland Department of Business and Economic Development. The loans will be forgiven if Volvo makes the investment, retains its existing workforce and adds 140 jobs by Dec. 31, 2015, DBED spokeswoman Karen Hood said.

Volvo said the Hagerstown plant also will become its North American clearinghouse for used vehicle parts.

Volvo, based in Gothenburg, Sweden, acquired the Hagerstown plant when it took over Mack in 2001. It has invested more than $350 million in the facility, which produced more than 45,000 engines and 21,000 transmissions last year.

Volvo said last month that it was starting a three-year restructuring program, mostly of its truck business, to make the company more efficient. The announcement followed six straight quarters of declining profits or losses.

Volvo will release its third quarter 2013 financial results Oct. 25.

The company’s North American headquarters are in Greensboro, N.C.

Text Only
Local News
Must Read
News related video
In Virginia, the Rise of a New Space Coast Two Women Narrowly Avoid Being Hit by Train NCAA Settles Head-injury Suit, Will Change Rules Jury Awards Ventura $1.8M in Defamation Case Crayola Announces Family Attraction in Orlando Raw: NH Man Held on $1M in Teen's Kidnapping New Sanctions on Key Sectors of Russian Economy Senate Confirms McDonald As VA Secretary Kerry: Not Worried About Israeli Criticism US Ready to Slap New Sanctions on Russia Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Fish Oil Plant Blast Kills One Two Huge Fires Burning in Northern California Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Suspect Dead, Marshals and Cop Wounded in NYC Judge OKs Record-setting $2B Sale of Clipper