VDL ends public bus manufacturing in the Netherlands – urban models will only be produced in Belgium

After years of financial losses, VDL Groep has decided to take radical steps; the Dutch conglomerate’s bus manufacturing division, VDL Bus & Coach, is relocating mass transit vehicle production to Belgium, to its new, modern plant built in Flemish Roeselare. As a result of the reorganization, about 250 employees, mostly on fixed-term contracts, will be laid off from the two VDL subsidiaries in Valkenswaard, while a voluntary redundancy program will assist the departure of an additional 40 employees nearing retirement. Furthermore, approximately 60 employees will be relocated to other positions within the corporate group.

This move also means that VDL will permanently cease the assembly of public buses in the Netherlands – the production of new generation VDL Citea models will henceforth take place exclusively at the plant in Roeselare.

The changes affect practically half of the jobs at the two Valkenswaard factories, where approximately 700 people are employed in total. However, the company describes the transformation not as a classic downsizing but as an adaptation to market conditions.

The reorganization aims to eliminate the losses of the bus manufacturing division, which have been putting continuous pressure on the group’s finances in recent years. To ensure the long-term sustainability of the bus manufacturing division, VDL is gradually phasing out loss-making activities. As part of this process, the Heerenveen plant, which was part of the heritage of the previously acquired Berkhof Jonckheere group, was closed in 2022. Now, as a further step, public bus manufacturing will cease at the Valkenswaard plant as well; the site will exclusively focus on assembling the VDL Futura range of long-distance models in the future.

However, it is uncertain whether the remaining long-distance bus manufacturing in Valkenswaard alone provides a sufficient foundation for the long-term operation of the factory and truly ensures the sustainability of VDL’s entire bus manufacturing operations. According to internal sources, many believe it is only a matter of time before this Dutch bus plant also closes permanently. The uncertainty is heightened by VDL’s acquisition of the Belgian Van Hool’s North Macedonian manufacturing base in 2024, which, due to significantly lower production costs, could offer a competitive alternative for producing long-distance models in the long run. Van Hool established the manufacturing capacity there in the 2010s, playing a key role in the company’s survival, primarily due to the much cheaper labor (reports indicate that the average hourly wage was only a tenth of the Belgian rate) and lower overall operational costs.

The downsizing affects not only bus manufacturing. The VDL Steelweld site in Breda, which is part of the VDL group, will also see a reduction in staff. Around three dozen jobs will be eliminated here. The decision is driven by a decline in automotive orders, as the company’s main activity is supplying automated production lines to vehicle manufacturers.

Despite the ongoing losses in public bus manufacturing, the segment played a crucial role in VDL Groep’s performance in 2024. The division’s revenue increased by 67% last year, from 304 million euros to 509 million euros compared to the previous year, primarily due to accelerated deliveries and stabilized demand. The new generation, fully electric VDL Citea models played a key role, with series production expanding significantly, and these models have recently been introduced in countries including the Netherlands, Belgium, Germany, Denmark, Italy, Luxembourg, and Finland.

However, the financial background has not improved significantly. The group’s annual revenue last year fell by more than 30% from the record year of 2023, dropping from 6.354 billion euros to 4.281 billion euros. Net profit also declined from 82 million euros to 66 million euros, representing a nearly 20% decrease.

The future’s key now lies in Roeselare, where VDL sees not only the future of the electric Citea models secured but also the reorganization and consolidation of the entire bus manufacturing division. The question remains whether relocating production to the new site will indeed be sufficient to make the division finally profitable.