New Wave of Layoffs at Paccar’s Sainte-Thérèse Plant
Paccar’s Sainte-Thérèse plant, the only truck assembly facility in Quebec, is now operating at reduced capacity due to a significant drop in demand. | PHOTO CREDIT: Paccar
The slowdown continues at Paccar in Sainte-Thérèse. Approximately 175 employees will be laid off starting August 4, representing 20% of the workforce. This announcement follows the 300 job cuts that have already occurred over the past year, along with the elimination of the evening shift earlier this year.
The truck manufacturer, owner of the Kenworth and Peterbilt brands, is seeing a decline in production due to a more cautious North American market. In just one year, the number of trucks assembled daily at the Quebec facility has dropped from 90 to fewer than 60. Starting next month, the plant is expected to dip below the 50-units-per-day mark.
As the only major truck manufacturer with an assembly plant in Quebec, Paccar builds Class 5, 6 and 7 vehicles in the Laurentians and focuses the bulk of its output on exports to the United States. While these exports are not subject to tariffs, a 25% drop in deliveries in the first quarter has had a direct impact on the company’s operations.
In Quebec, Paccar also struggles to win public tenders, where lowest-bid rules dominate. This constraint limits access to municipal and public-sector contracts despite the company’s local infrastructure.
In this context, the group is adjusting its production pace and reducing its workforce, while maintaining a strategic position in the North American market.
