Volvo AB has announced it will produce engines for both Mack and Volvo trucks out of its Hagerstown, MD, factory, which has been producing Mack engines since 1961.
Volvo said it wants to reduce costs by sharing more engines and parts among its Volvo, Mack and Renault brands. The company's Powertrain division is also sharing engine technology with the heavy truck unit.
"The decision represents an important commitment to the North American truck market," said Leif Johansson, president & CEO of the Volvo Group.
Volvo truck engines currently are produced at a Volvo Powertrain plant in Sweden.