Kenworth, Peterbilt Maker Cuts 175 Jobs in Quebec, Union Says

Paccar Inc., the parent company of Kenworth and Peterbilt, is facing a reduction in its workforce due to declining demand for trucks at its Sainte-Therese, Quebec plant, which will see 175 employees laid off starting August 4. This follows a previous layoff of 250 workers announced last December. The plant, which employs between 900 and 1,000 people, primarily manufactures light- and medium-duty trucks and exports most of its production to the U.S. The local union, Unifor, stated that production at the plant has decreased by around 50% over the past year, attributing the downturn to an uncertain economic climate, heightened by U.S. tariffs. Unifor has urged the Canadian government to implement support measures for the purchase of trucks made in Canada.

From a transportation perspective, this situation highlights the vulnerabilities within North American manufacturing, particularly for industries heavily reliant on cross-border trade. The decline in production not only affects the local economy but also indicates potential challenges in meeting the demand for commercial vehicles, which are crucial for supply chain logistics. The call for government support emphasizes the need for policies that encourage domestic purchasing and bolster the manufacturing sector against external economic pressures, including tariffs and trade disputes. Ultimately, sustaining healthy production levels in the truck manufacturing sector is vital for ensuring efficient transportation infrastructure and supply chain reliability.