International Motors Job Cuts Limited to Mexico, CEO Says
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International Motors does not expect any job cuts at its U.S. manufacturing facilities in the coming months despite a slump in demand in the first quarter of 2025, CEO Mathias Carlbaum said April 29.
Lisle, Ill.-based International cut 900 jobs at its heavy-duty truck manufacturing plant in Escobedo, Mexico, axing the second shift at the assembly facility.
International’s heavy-duty truck output fell in each of the past four or five months, Carlbaum said during a roundtable with reporters on the sidelines of the 2025 Advanced Clean Transportation Expo, as Escobedo output was steadily trimmed.
The Traton Group unit operates assembly plants in Springfield, Ohio, and San Antonio, plus the Huntsville, Ala., powertrain facility in the U.S.
International Motors CEO Mathias Carlbaum speaks on the sidelines of the 2025 ACT Expo in Anaheim, Calif. (Keiron Greenhalgh/Transport Topics)
Volvo Group’s North American truck manufacturing operations are set to lay off about 1,000 employees for similar reasons to the Escobedo job cuts.
International’s U.S. plants are being kept busy by medium-duty truck demand and a bus backlog, Carlbaum said. International owns school bus manufacturer IC Bus.
International sold 13,702 trucks in Q1, a 27% decrease compared with 17,512 trucks in the year-ago period, Traton said April 28, adding that International sold 16,889 trucks and buses in Q1, a 12% decrease compared with 19,280 vehicles a year earlier. Truck and bus orders at the original equipment manufacturer slumped 30% to 12,285 vehicles from 17,512 vehicles in the same period 12 months earlier.
International’s sales revenue in the most recent quarter totaled $2.472 billion, down 10.6% compared with $2.765 billion.
“In the U.S., uncertainties about tariffs, economic outcomes and inflation added to the negative market sentiment. … In this environment, our customers are not willing to make larger investment decisions,” Traton CEO Christian Levin said during the company’s Q1 earnings call April 28.
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When demand will pick up is the million-dollar question, Carlbaum said a day later. “How do you polish this crystal ball?” he asked. Clarity on the demand picture will emerge over the next two or three months, he noted, saying International has seen cancellations, which is something the truck maker has not witnessed in four or five years. “We are close to the bottom. The question is how long the bottom lasts. There will be zero pre-buy.”
RELATED: Traton CEO Sees EPA Pre-Buy Sales Slipping to 2026
A rush among fleets to “pre-buy” new trucks was anticipated before the stricter federal emission standards were due to take effect, sustaining truck manufacturers and dealerships somewhat through the lean quarters of the ongoing freight downturn.
ACT Research has cut its Class 8 demand expectations twice in consecutive months. In March, ACT analysts cut their forecast by about 8% to 288,800 from 316,500 tractors and trucks in February. In April, the total was revised to 255,100.
RELATED: Class 8 Truck Sales Climb From February, Still Lag 2024
“We see a flat to weak 2025,” Carlbaum said of demand, with appetite picking up in 2026.
What won’t help boost demand are price increases due to tariffs. Raw materials plus direct and indirect tariffs — particularly on electronic components — led International to increase its prices, Carlbaum noted, adding that suppliers had no wiggle room when it came to passing on the tariffs to International.
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