Nova Bus said June 21 that it plans to close its Plattsburgh, N.Y., manufacturing facility by 2025, effectively exiting the U.S. transit bus market to focus its efforts within Canada.
The Plattsburgh facility opened in 2009 and employs more than 300 people. Nova Bus, which is owned by Volvo, pledged to work closely with employees, as well as other Volvo companies to support Plattsburgh area employees impacted by the closing.
“We will do the utmost to support our employees, many of whom have been employed for numerous years. We will work together with our sister Volvo companies, surrounding businesses, local authorities and communities to support our people in finding new employment opportunities,” said Nova Bus President Ralph Acs.
Nova Bus has recently been awarded contracts to supply buses to the Washington Metropolitan Area Transit Administration, the City and County of Honolulu and the Metropolitan Transit Authority of Harris County. Additionally, Milwaukee County Transit System’s inaugural bus rapid transit line, CONNECT 1, is operating with 11 new LFSe+ buses from Nova Bus. The company will continue to support U.S. customers with parts and service needs.
“The strategic decision to end bus production in the U.S. by 2025 was made after evaluating its profitability, which was experiencing continued financial losses over the years,” says Anna Westerberg, chair of the Nova Bus Board of Directors.
“Although this strategic decision is a difficult one, by changing our business model with a focus on Canada, we will improve profitability and secure our long-term competitiveness,” added Acs.
Recent wins in Canada for Nova Bus include a contract from Toronto Transit Commission for up to 541 electric buses and a contract to provide up to 1,229 electric buses to several transit providers in Quebec as part of North America’s largest electric bus project to date.
According to Volvo Group, the restructuring is expected to make the Nova Bus operation profitable. Production in North America will be focused to the company’s two Canadian facilities located in Saint-Eustache and Saint-François-du-Lac, Quebec.
Volvo Group reports the restructuring of Nova Bus will have a SEK 1.3 billion (US$122 million) negative impact on the group’s second quarter 2023 income, but it “will not have a material impact on Volvo Group revenues.”
Nova Bus says it continues to analyze the impact this restructuring will have on its Canadian organizational structure.
