Mack to lay off assembly plant workers

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MACUNGIE, Penn. Mack employees are already feeling the sting of the 2006 pre-buy, with the company announcing a major workforce reduction.

Mack announced this morning it will be reducing employment by about 450 positions at its Macungie, Penn. assembly plant over the next six months. The layoffs are the result of an expected market downturn in 2007 resulting from this years pre-buy as trucking companies alter their buying cycles to delay purchasing the more expensive 2007 trucks and engines.

New Class 8 trucks will cost $7,500-$10,000 more than 2006 models as a result of new emissions requirements.

“We very much regret the impact this action will have on our employees, their families, and our local community,” said Mack president and CEO Paul Vikner. “But these reductions are essential to the responsible management of our business through the downturn. Right now, our focus is on developing our plans to assist affected employees.”

About 1,040 people currently work at the Macungie plant. The first of the employee reductions will occur before the end of the year with additional cuts expected in the first half of 2007, the company reports.

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