(Reuters) – The United Auto Workers Union (UAW) said it was “extremely disappointed” on Friday by truck maker Volvo Group’s decision to open a new truck plant in Mexico, which the automaker said , would help supplement its American production.
The union, in a letter released Thursday, said it was studying contractual obligations regarding truck manufacturing rates at the Lehigh Valley Operations (LVO) plant and the potential legal ramifications of Volvo’s move in Mexico.
Volvo announced the new plant on Thursday and added that it would invest an additional $80 million for future production at the LVO plant, after investing $73 million over the past five years.
“It’s a slap in the face to all of us,” said Tim Hertzog, president of UAW Local 677, adding that the company informed the union of the plans 15 minutes before the announcement.
Volvo was not immediately available for comment Friday.
(Reporting by Abhinav Parmar in Bangalore; Editing by Ravi Prakash Kumar)
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