Nova Bus ends bus production in the US

22 June 2023

Nova Bus is exiting bus production in the US market. Consequently, the company has decided to close its Plattsburgh manufacturing and delivery facility by 2025. Production in North America will be focused to its Canadian facilities located in Saint-Eustache and Saint-François-du-Lac (Quebec) and Nova Bus will continue its Canadian business. A restructuring provision of SEK 1.3 billion will negatively impact the Volvo Group’s operating income in the second quarter of 2023. The expected negative cash flow effect is estimated to approximately SEK 1.0 billion over the next two years.

Nova Bus is a subsidiary from the Volvo Group which is restructuring its bus and coach divisions. In Europe it announced to close down the factory for complete buses and coaches in Poland by 2024. The focus will be on producing chassis for e-buses, build in Sweden, the new BZL chassis, and for coaches. Volvo Buses have signed deals with Egyptian bus manufacturer MCV for the production of electric buses fore the European market and with Spanish Sunsundegui for the production of coaches for which Volvo will deliver the chassis. The reason for the interventions in Northern America and Europe are the same, according to Anna Westerberg, Chair of the Nova Bus Board of Directors. “The strategic decision to end bus production in the EU and US by 2025 was made after evaluating its profitability, which was experiencing continued financial losses over the years.” Nova Bus

states it will work closely with employees, customers, and suppliers as bus operations in the Plattsburgh facility are planned to continue until the first quarter of 2025. Nova Bus will continue to support its US customers’ parts and service needs. “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,” adds Ralph Acs, President of Nova Bus. “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,” says Ralph Acs.