January 26, 2017 3:30 PM, EST

Volvo Trucks North America Cancels Planned Layoffs at Virginia Factory

Justin Ide/Bloomberg News

Volvo Trucks North America has canceled plans to lay off 500 second-shift employees from its New River Valley truck assembly plant in Dublin, Virginia, citing improving inventory levels.

The truck maker has continued to monitor the ongoing reduction in new truck inventory across the industry in the weeks since the original announcement mid-December and is encouraged with the trend.

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“Based on this, we’ve decided not to go forward at this time with the previously announced reduction, so that we can maintain manufacturing flexibility as we continue to monitor the market situation,” spokesman Brandon Borgna told Transport Topics.

The plant is the largest Volvo truck manufacturing facility in the world and produces all Volvo trucks sold in North America, said VTNA, a unit of Sweden-based Volvo Group.