Nova Bus is exiting bus production in the U.S. market and closing its Plattsburgh, New York. manufacturing and delivery facility by 2025, the company announced.
Production in North America will then focus on its Canadian facilities in Saint-Eustache and Saint-François-du-Lac, both in Quebec. Nova Bus will continue its successful Canadian business, where it is the market leader, the company said.
“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,” said Anna Westerberg, Chair of the Nova Bus Board of Directors.
Nova Bus will work closely with employees, customers, and suppliers, as operations in the Plattsburgh facility are planned to continue until the first quarter of 2025. Nova Bus will continue to support its U.S. 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.
Support for Nova Bus employees
The decision will gradually affect full time positions at Nova Bus by 2025.
“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,” Acs said.
The impact this decision will have on the Canadian organizational structure remains under analysis by Nova Bus and will continue to be defined as the restructuring takes place over the next 24 months.
Last year, Nova Bus’ sister company Prevost ended production of commuter coaches at the same plant.
That decision comes just three years after the motorcoach manufacturer celebrated winning two major contracts with the New York State Metropolitan Transportation Authority. The Canadian manufacturer began assembling coaches at the Plattsburgh, New York, facility in late 2014 to qualify for sales under the Buy America Act, which requires that coaches bought with federal dollars be manufactured in the United States and that at least 50 percent of the cost of their components comes from the U.S.
