Volvo Loses State Funding After Failing to Create New Jobs

June 15, 2015



State officials are withholding tax credits and pursuing a partial reimbursement of grant funds from Volvo Construction Equipment in Shippensburg, Pa., after the company failed to create 300 new jobs, reports Public Opinion Local News.

According to the Pennsylvania Department of Community and Economic Development (DCED), Volvo did not meet the obligations of the initial agreement with the state, which promised to create 300 new full-time jobs by the end of 2014 and make a capital investment of more than $40 million in the project.

DCED requested partial reimbursement of the grant funds in the amount of $205,000.

Volvo is appealing the action, said a company spokeswoman.