Mack Trucks Inc. on Thursday, Aug. 14, announced a major restructuring plan designed to further improve the company’s competitiveness and position it for long-term industry leadership.
“Through hard work and substantial investment over the last seven years, Mack now has a completely revitalized vehicle lineup, an entirely new engine range and a dealer network that’s stronger than ever,” said Dennis R. Slagle, Mack president and chief executive officer. “But our focus is on long-term leadership in a very challenging market, regulatory and economic environment, and this demands that we continue to improve our profitability and competitiveness.”
Key components of the restructuring plan – which also involves other business units of the Volvo Group, of which Mack is a member – include:
· Moving the company’s administrative headquarters and most support functions from Allentown, Pa., to Greensboro, N.C., where many of these support functions – like information technology, parts logistics, human resources, finance, etc. – already are headquartered, in order to improve organizational efficiency;
· Transferring assembly of all Mack highway vehicles from the plant in Virginia’s New River Valley (NRV) to the plant in Macungie, Pa. – where Mack’s construction and refuse vehicles currently are assembled – to take advantage of efficiencies arising from consolidated assembly of the entire product line, and create a brand-unique environment for Mack customers. NRV will continue to produce all the vehicles in Volvo Trucks North America’s range;
· Consolidating product development and purchasing functions currently located in the Allentown Engineering Development & Test Center to the Technical Center in Greensboro to take advantage of synergies. The Allentown facility will be converted into a Customer Demonstration/Reception Center that also will house personnel supporting Macungie production; and
· Restructuring the parts distribution network serving its dealers and customers – to include creating a new Volvo Group North America central warehouse in a location to be determined; closing the Columbus and Dallas warehouses; and downsizing facilities in Baltimore, Chicago, Jacksonville and Memphis – in order to improve the network’s competitiveness and aftermarket parts support.
