In a strategic move aimed at improving profitability and ensuring long-term competitiveness, Nova Bus, a subsidiary of the Volvo Group, has announced its decision to exit bus production in the US market. The company plans to close its manufacturing and delivery facility in Plattsburgh by 2025, focusing its operations on its Canadian facilities in Saint-Eustache and Saint-FranƧois-du-Lac, Quebec, for orders from the North American market.
The choice to discontinue bus production in the US comes after a careful evaluation of the profitability of this segment, which has been plagued by sustained financial losses over the years, according to Anna Westerberg, Chair of the Nova Bus Board of Directors. Recognizing the challenges faced, Nova Bus aims to optimize its business model by concentrating on its Canadian operations, with a view to bolstering profitability and securing a sustainable competitive position.
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While the decision undoubtedly brings about difficult consequences for the workforce, Nova Bus is committed to supporting its employees during this transition period. Ralph Acs, President of Nova Bus, reassures employees that the company will spare no effort in assisting them, particularly those who have been dedicated to the company for many years. Collaborating closely with sister companies within the Volvo Group, local businesses, authorities, and communities, Nova Bus will actively explore avenues for its employees to find alternative employment opportunities.
In the interim, Nova Bus plans to continue its bus operations at the Plattsburgh facility until the first quarter of 2025, ensuring that its customers’ parts and service needs are met during this phase. By proactively engaging with employees, customers, and suppliers, Nova Bus aims to facilitate a seamless transition while upholding its commitment to delivering exceptional service to its valued US customers.
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The decision to exit the US market is undoubtedly a significant one, but Nova Bus remains confident that this strategic shift will pave the way for a brighter future. By consolidating its operations in Canada, the company seeks to fortify its financial standing and ensure its ability to offer innovative and sustainable transportation solutions in the long run.