Swedish automaker Volvo (DE:VOL1) says it plans to layoff as many as 800 workers at three U.S. manufacturing facilities due to market uncertainty caused by President Donald Trump’s tariffs.
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Volvo Group North America said in a written statement that it has told employees it plans to layoff as many as 800 people at its Mack Trucks site in Macungie, Pennsylvania, and two Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland. The automaker currently employs nearly 20,000 people in North America.
The layoffs are part of a growing trend as companies grapple with an uncertain macroeconomic environment and slumping consumer demand after President Trump imposed import tariffs on products from around the world. Many economists now expect the U.S. economy to enter a recession this year.
Auto Industry Impacts
The automotive industry, which is global in scope, has been one of the hardest hit sector by President trump’s tariffs. Volvo’s layoffs are the latest response from an industry that is dealing with tariffs as high as 25% on imported vehicles and parts.
In its written statement, Volvo said, “We regret having to take this action, but we need to align production with reduced demand for our vehicles.” Other automakers have warned of having to reduce production and layoff staff as they navigate U.S. tariffs. Volvo’s stock has declined 3% in the last three months.
Is VOL1 Stock a Buy?
The stock of Volvo has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 11 Buy, one Hold, and three Sell recommendations assigned in the last three months. The average VOL1 price target of €28.82 implies 27.11% upside from current levels.
