The Volvo Group plans to invest $37.7 million in a new 115,000-square-foot regional distribution center in Tacoma, Washington, to optimize parts delivery and expand coverage in the U.S. Northwest and Western Canada, the company said.
The facility, which will employ 20 people, will support dealers of Volvo Trucks, Mack Trucks, Volvo Penta, and Volvo Construction Equipment.
“This facility represents a significant expansion to the Volvo Group’s parts distribution capabilities, allowing us to reduce transportation lead times and improve reliability, especially for dealers in the more remote areas of Western Canada,” Peter Andell, VP of service market logistics for Volvo Group North America, said in a Dec. 16 press release.
The truck manufacturer is renovating an existing building into the new RDC, which it expects to open in the first quarter of 2027 as the primary distribution center for about 240 dealers, according to the release. Volvo Group expects the RDC to reduce delivery times on stock orders by an average of one to two days and fulfill more than 500,000 order lines annually.
Volvo Group unveiled plans for the new RDC two months after lowering its 2025 North America sales outlook to 265,000 trucks, a reduction of 10,000 units, according to an October 2025 earnings call. The company is facing challenges in one of its largest markets due to trade tensions and a freight slowdown.
In addition, since Nov. 1, 2025, the company has had to contend with a 25% tariff imposed by President Donald Trump on imports of heavy-duty and medium-duty trucks and their associated parts.
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