Nova Bus Ending U.S. Bus Production

Nova Bus is exiting bus production in the U.S. market. Consequently, the company has decided to close its Plattsburgh, N.Y., manufacturing and delivery facility by 2025.

With Nova Bus Plattsburgh closing, production in North America will be focused to its Canadian facilities located in Saint-Eustache and Saint-François-du-Lac (Quebec). Nova Bus will continue its successful Canadian business, where it is the market leader, according to the company’s press release.

A restructuring provision will negatively impact the Volvo Group’s operating income in the second quarter of 2023.

Securing Nova Bus Competitiveness 

“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.

Nova Bus said 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 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.

Efforts to Provide Alternatives for Nova Employees

The decision to end bus production in the U.S. and focus on Canada will gradually affect full time positions at the Nova Bus facility 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,” said Ralph Acs.

The extent of 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.

The restructuring will not have a material impact on Volvo Group revenues. When completed, the restructuring is expected to make the Nova Bus operation profitable. A restructuring provision will negatively impact Volvo Group’s operating income in the second quarter of 2023.