Nova Bus ends U.S. bus production

Nova Bus is leaving the U.S., but will maintain its operation in Canada. (Photo: AB Volvo)

Nova Bus with end bus production in the U.S. market, which means it will close its its Plattsburgh, N.Y., manufacturing and delivery facility by 2025.

The company said production in North America will then be focused to its facilities located in Saint-Eustache and Saint-François-du-Lac, Quebec, Canada. It will continue its successful Canadian business, where it said it is the market leader.

A restructuring provision of SEK 1.3 billion will negatively impact the Volvo Group’s operating income in the second quarter of 2023.

“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 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 said it 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,” said Ralph Acs, president of Nova Bus.

Deploying efforts to provide alternatives for Nova Bus employees

The decision to end bus production in the US and focus on Canada 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,” 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.

Nova Bus got its start in Saint-Eustache as a GMC bus factory, and was acquired by Volvo Group in 2004.