Freightliner Cuts Output, Jobs at Portland Truck Plant

Freightliner, the DaimlerChrysler (DCX) unit that makes commercial trucks, said Monday that because of “a continuing downturn in the North American heavy-duty truck manufacturing industry,” it will cut production rates and its factory workforce at its truck manufacturing plant and its parts plant in Portland, Ore.

Freightliner President and Chief Executive Officer Jim Hebe said in explaining the decision that “a combination of high fuel prices, higher interest rates and a general economic slowdown has led to a significant decline in orders for heavy-duty trucks over the past year.”

Net orders for heavy-duty trucks fell 38% in 2000, he said, and Freightliner expects North American heavy-duty truck sales to fall as much as 45% in 2001.

On March 30, the company will stop second-shift operations at the Portland facilities, cutting 1,085 employees who received advanced notice Monday. That will shrink the workforce there from 2,242 to 1,157. The production rate will slow to 35 trucks per day from 74.

“We regret having to take this action,” Hebe said. “We have made every effort to avoid further production cuts and layoffs, but high fuel prices and economic weakness continue to depress the demand for heavy-duty trucks in North America.” In all, Freightliner employs 3,994 in Portland, its headquarters city.

The Portland truck plant makes Freightliner-brand, heavy-duty trucks, while the parts plant makes components for the truck plant and the company’s parts distribution network. These plants produce primarily for delivery to customers and dealers west of the Rocky Mountains, where sales are slower than in other regions.

Freightliner noted that all major North American heavy-duty truck makers have made large cutbacks over the past year, but Freightliner has sustained the highest production levels in the industry because of its large market share – 36.5% of the North American market.

reightliner makes Class 3-8 vehicles under the Freightliner, Sterling, Western Star, American LaFrance, Orion Bus and Thomas Built Buses nameplates.