CCJ Daily Dispatch, June 18: Celadon’s Mexican assets sold to Jaguar for $6.1 million

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Updated Jun 19, 2020

Trucking news and briefs for Thursday, June 18, 2020: 

Celadon selling Mexican assets for $6.1 million
The Mexican assets of defunct Celadon have been sold to Jaguar Transport for a $6.8 million bid in an online auction earlier this month, according to documents filed in the U.S. Bankruptcy Court for the District of Delaware.

The purchase price was adjusted down to $6.1 million in the Stock and Asset Purchase Agreement.

The assets to be acquired by Jaguar include Celadon Mexicana, Leasing Servicios and Jaguar Logistics, and 75% of the outstanding shares of Servicios de TransportaciĂłn Jaguar and Servicios Corporativos Jaguar. The company will also acquire a terminal in Nuevo Laredo, five International ProStar tractors and 96 trailers.

Celadon filed for Chapter 11 bankruptcy in December and immediately ceased operations. The company operated more than 3,300 trucks and tractors. Ongoing legal troubles and expenses surrounding a financial scandal were among factors blamed for the sudden shutdown.

Volvo cutting 4,100 positions due to COVID-19
Volvo Group announced Tuesday it will reduce its global white-collar workforce by more than 4,100 positions during the second half of 2020 in response to the COVID-19 coronavirus pandemic.

Around around 15 percent are consultants, the company said. Approximately 1,250 of these positions are in Sweden.

Volvo said the need for staff reductions would have been higher without various governmental support packages enabling short-term layoffs and other similar measures.

“The [COVID-19 pandemic] and the global measures taken to fight it has led to a market situation impacting our industry severely,” says Volvo Group President and CEO Martin Lundstedt. “The effects are expected to be lower demand going forward and we need to continue to adjust our organization accordingly. In parallel, we will accelerate the competence shift needed for new technologies and business models.”

Volvo Group owns Volvo Trucks, Mack Trucks, Terex Trucks, Renault Trucks and more.