Local Mack boss out, Volvo confirms

[kscarbel2]

The Morning Call  /  April 16, 2016

One day after announcing a $70 million investment at its plant in Lower Macungie Township, Mack Trucks said its top-ranking Lehigh Valley official is no longer with the company.

Wade Watson, who was vice president and general manager of Mack Trucks Lehigh Valley Operations for less than a year, is no longer employed by Mack or its corporate parent, the Sweden-based Volvo Group, company spokesman Christopher Heffner* confirmed Saturday.

* Mack brand public relations manager, August 2014 to present.

Citing company policy, Heffner declined to say when Watson left or provide a reason for his departure.

"We will soon name an acting general manager who will lead the operations until we identify Wade's successor," Heffner said.

Watson did not return a call left on his cellphone.

Watson arrived in the Lehigh Valley in May to lead Mack's local operations, including the company's 1 million-square-foot plant in Lower Macungie Township, a soon-to-be-expanded facility where all Mack trucks built for the North American market and exports are assembled.

Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corp. (LVEDC)), said he received a text Friday night from Watson, who informed him that he had left the company. Cunningham said he doesn't know the reason for the departure of Watson, whom the LVEDC welcomed to its 35-member board of directors March 22.

"It's very surprising to me," Cunningham said. "We were working on different components related to the expansion plans. It's confusing, too. He's been such a principal player in the re-engagement of Mack really into the Lehigh Valley community."

“For the last year, he has been the point person for those discussions,” Cunningham said of Watson. “In the end, what’s important is that the institutions and the companies remain and they made that clear with their expansion.”

Cunningham added that Watson was instrumental in keeping Mack in the Lehigh Valley. State, county and local officials had worked hard in recent months to improve relations with the company, which had atrophied a bit over the years.

At a Nov. 11 LVEDC event, Watson made it clear Mack is here to stay, also announcing an expansion to the Lower Macungie plant by adding receiving docks and putting a new facade on the 40-year-old building.

On Friday, Mack made its commitment official, announcing plans to invest $70 million over the next three years to modernize and expand the plant.

Before starting at Mack Trucks, Watson was the vice president of operations for Volvo Powertrain North America in Hagerstown, Md., bringing $70 million in investments to the plant during his nearly five-year run.

He moved with his wife and young son to Zionsville, Pennsylvania (near Macungie) last year and, in an interview with The Morning Call in December, described himself as a fixer who thrives on change and wanted to get Mack more involved in the community. Watson also said he planned to remain in the area well into the future.

"I think, for my expectations, I could see us staying here for quite some time," Watson said then. "There's lots of work to do here, and there's lots of fun stuff to do in the area."

Related reading - http://www.bigmacktrucks.com/topic/44865-mack-to-upgrade-lehigh-valley-truck-plant/.

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[kscarbel2]

Wade Watson is no longer "thriving on change" at the Volvo Group..................http://www.bigmacktrucks.com/topic/42985-mack-trucks-vp-thrives-on-change/#comment-314618

The question is.......why? The Lower Macungie Township's Board of Commissioners and Lehigh Valley Economic Development Corp. seemed thrilled with him, and are shocked by his sudden departure from the equation. They claim he earned their trust and respect, something that other Volvo officials had failed to do.

(After Volvo broke a much earlier promise and closed Mack World Headquarters and the R&D center (Research, Development and Test Center), there's little wonder for their distrust with Volvo.

[kscarbel2]

Wednesday, Nov 11 - Wade Watson speaking at an event entitled "Mack Trucks in the Lehigh Valley and in the World", in front of 200 area business professionals. (http://www.mcall.com/business/mc-mack-trucks-in-the-lehigh-valley-20151111-story.html)

Video - http://www.mcall.com/videos/mc-video-mack-trucks-vp-wade-watson-is-optimistic-about-truck-manufacturer-s-future-20151111-premiumvideo.html

Thursday, April 14 - Wade Watson was terminated or resigned.

Friday, April 15 - Dennis Slagle (Mack brand president) officially announced the Macungie investment, via a released statement. (It would have been proper.......for him to fly up from Greensboro to Macungie and make the announcement in person)

Saturday, April 16 - Volvo responds to media inquires stating that, after 16 years employment, Wade Watson "is no longer with the company."

[HeavyGunner]

i know it may not be fair to assess someone from a video like that but it seems to me that he was genuine in his speech and seemed to care about the product he was showcasing. 

[Hollerholler]

First, Volvo didn't release a statement on Saturday- they CONFIRMED the story as a result of the paper calling and asking. Wade got the ax on Thursday. Someone from the plant probably called the press to tell them the news. They probably did that because the people who got laid off found out from the same newspaper, not from management. He went to the press to tell them about the layoffs before he told the people in the plant.

Wade was on vacation the week of all of the terminations... He wasnt there for the blue collar terminations or for when the supervisors all got fired. That isn't respect. That isn't leadership.

 something went down. Something happened, but it wasn't a disagreement 

[Hollerholler]

His firing was handle with the same professionalism as everyone else's under his watch...except he was there for his.

[kscarbel2]

14 hours ago, Hollerholler said:

First, Volvo didn't release a statement on Saturday- they CONFIRMED the story as a result of the paper calling and asking. Wade got the ax on Thursday. Someone from the plant probably called the press to tell them the news. They probably did that because the people who got laid off found out from the same newspaper, not from management. He went to the press to tell them about the layoffs before he told the people in the plant.

Wade was on vacation the week of all of the terminations... He wasn't there for the blue collar terminations or for when the supervisors all got fired. That isn't respect. That isn't leadership.

 something went down. Something happened, but it wasn't a disagreement 

Thank you for laying that out. If true...........he handled himself in a manner.......typical of Volvo management.

Volvo alleges the 400 men were laid off......not terminated.

Local 677 has a different opinion.  (http://www.bigmacktrucks.com/topic/43123-mack-trucks-laying-off-400-workers-at-macungie/#comment-315947)

[kscarbel2]

Among other things, one gets the impression of a morale issue at Volvo's Mack brand Macungie assembly plant (Lehigh Valley Operations in Volvo speak).

Zenon Hansen would probably say, "The ability to lead a company to success, is done so through earned respect". Some ethics, morals and values remain ageless.

The truck industry is a cyclical business. And the generations of talented Mack truck assemblers in the Allentown area are well aware of that.  Employment at times requires adjustment. But "how" you go about that, is the key to steady labor relations.

 

"I had a very fine relationship when I was in Allentown with Mack employees. They were absolutely super, and also with the Mack union (United Auto Workers)."

Zenon C.R. Hansen, former chairman of the board and CEO - Mack Trucks, Inc.

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[kscarbel2]

Reflecting on the workers and supervisors who were let go last December at Macungie, and the long time morale woes under Volvo at both the company and dealer levels.......................

Unlike Volvo who began firing and closing from day one, when Zenon C.R. Hansen took over a financially floundering Mack Trucks on January 7, 1965, he did nothing of the sort.

Zenon went into Mack Trucks and didn’t replace a man. He took the entire existing team that was failing because of its problems, and worked with that team. And he kept that team of people throughout his incredibly successful 10-year tenure at Mack Trucks.

With the same team of people that had been failing, by the end of 1973, nine years after Zenon had taken the helm at Mack Trucks:

- Production had increased 138 percent

- New truck deliveries increased 134 percent

- Mack sales skyrocketed 200 percent, from US$275 million to US$880 million

- Shareholder's equity rose 147 percent, with return on invested capital increasing from 2.7% to 13%

- Earnings per share increased by an astonishing 764 percent

 

My friends, this is what I call “leadership in the truck industry”.

 

Throughout his entire career as a leader in the truck industry with Diamond T, White and finally Mack Trucks, Zenon C.R. Hansen never endured a labor strike.

Zenon C.R. Hansen knew there were unions, and felt there was a place for unions.

Zenon wanted to be up close with the workers. He never wanted to be where he was removed from the aches, pains and turmoil, as well as the hopes and dreams of the workers. This is why he moved all of Mack’s office’s back to Allentown*.

Zenon was not only passionate about Mack Trucks, but this distinguished Eagle Scout was passionate about America and its people. He created jobs, rather than cancelling them. There was no social welfare......he was tough and demanding. Every position created by Zenon Hansen’s Mack Trucks served a legitimate purpose. But to be clear, employment at his Mack Trucks wasn’t a job, rather, it was “a way of life”.

Unlike the cold atmosphere of Volvo, Zenon C.R. Hansen had a common touch with his employees. For example, Mack had an employee at the company’s scrap yard who was doing a marvelous job. One day, Zenon drove his Cadillac down to the scrap yard, asked the worker to come down off his machine, and handed him his annual bonus check. The worker was shocked. Zenon loved expressing his appreciation by personally handing out bonus checks, and the loyalty that simple act inspired.

 

* Six months before Zenon took over a financially-troubled Mack Trucks on January 7, 1965, the truckmaker had opened a new corporate headquarters in Montvale, New Jersey (about 100 miles northeast of Allentown). The previous Mack management had also located its international sales unit (Mack Trucks Worldwide, Ltd.) in Hamilton, Bermuda, which he termed the “country club”. He promptly closed both, relocating them to Allentown. It’s also important to note that Zenon strongly considered closing Hagerstown and relocating engine and transmission production to Allentown, but determined it would be cost prohibitive (The Hagerstown powertrain plant went on line in September 1961, replacing the Plainfield, New Jersey plant).  

 

Summary

Yes, the truck industry is cyclical in nature. But there’s more to the laying off of those Mack employees last December. There is a problem. And in the spirit of Zenon C.R. Hansen, the problem needs to be faced....and fixed.

But year-after-year, the problem drags on.

Within the Mack brand management today, there isn’t a single career truck man onboard. Not even one. Think about that.

Zenon C.R. Hansen once said of the incompetent directors who were running Mack Trucks before he took over in 1965, “We dispensed with those directors and got others who knew something about trucks.”

Volvo Group’s new president, genuine truck man and Scania alumni Martin Lundstedt, needs to dispense with his current Mack brand management and “get some others who know something about trucks.”

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[kscarbel2]

Hatteras Yachts names ex-Volvo/Mack executive Wade Watson COO

Boating Industry  / July 21, 2016

Hatteras/Cabo Yachts, LLC announced that Wade Watson has joined the company as chief operating officer. Reporting directly to Hatteras President and CEO John Ward, Wade will oversee daily operations at Hatteras’ manufacturing plant in New Bern, N.C., with a focus on improving manufacturing operations. Wade has more than 20 years of manufacturing, aftermarket, quality control and management experience.

Wade’s previous experience includes several years working for Volvo AB, most recently as vice president and general manager of its Mack Trucks division.

Prior to that, he served as vice president of operations of Volvo Powertrain – North America, where he previously had served as vice president of quality and customer satisfaction.

Wade said joining Hatteras brings together two of his lifelong passions – the pursuit of excellence and a love of boating.

“I am extremely excited to join the Hatteras Team in New Bern,” he said. “I spent most of my formative years in Florida living on the Gulf Coast and have been on or around boats for much of my life. My professional life has been mainly driven by leading complex operations on journeys to operational excellence.”

One of Wade’s first goals at Hatteras is to improve operating efficiencies through systematic waste elimination, as well as building upon the strengths of Hatteras’ talented workforce to shorten lead-times from order to delivery.

“My experience as an operations leader within the global automotive sector has afforded me the opportunity to learn best practices from all over the world,” he said. “The combination of the time-tested craftsmanship for Hatteras with the latest operations/manufacturing techniques should prove to be an unbeatable combination. It is a real honor to be a part of such an iconic brand at such an exciting moment in its history.”

“We are excited to have Wade on our management team,” said Ward. “His dedication to operational excellence, combined with his love of boating, will serve us well. I look forward to continued growth at Hatteras with him by my side.”

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[kscarbel2]

Regardless of what happened at Macungie, I'm glad that someone gave him a break. As an outsider American (non-Swede) working under the Volvo environment, he is probably rediscovering life again. I hope he enjoys his new opportunity and it works out for the long-term.

Philadelphia-based private equity firm Versa Management bought Hatteras/CABO from Brunswick Corporation (Mercury Marine’s owner) in August 2013.

http://www.hatterasyachts.com/

http://www.brunswick.com/brands/