Paccar to Eliminate Shifts at Tennessee, Washington Plants

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ruck maker Paccar is planning to slash one shift from its Peterbilt Motors Co. plant near Nashville, Tenn., and one shift from its Renton, Wash., Kenworth Truck Co. plant, the Associated Press reported.

The cuts, prompted by an expected downturn in demand associated with the Environmental Protection Agency’s 2007 emission standards, will leave each plant with one shift, AP said.

Paccar did not specify how many jobs it would cut, AP reported, but the Tennessean newspaper said on its Web site that 667 workers at the Peterbilt plant near Nashville received layoff notices.

The cuts mirror similar action taken by truck maker Volvo, which announced in October plans to lay off about 600 workers at its North American powertrain facility in Hagerstown, Md. Volvo also cited increased costs related to meeting EPA ’07 standards as the reason for the cuts. (Click here for previous coverage.)

Engine maker Caterpillar has also moved to reduce expenses associated with EPA ’07, announcing in early November plans to reduce its workforce and shift some of its production capacity from truck to marine engines ahead of the rollout of the new emission standard. (Click here for previous coverage.)