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Daimler Trucks to Layoff 1,240 Workers in North America

June 06, 2016 by Jerry Hirsch, @Jerryhirsch

Daimler Trucks North America plans to lay off 1,240 workers at three factories in the U.S. and one in Mexico.

The labor force reduction comes just a month after the division of German automaker Daimler AG said it had revised its 2016 financial forecast downward because of slowing sales.

Daimler said the market for trucks in the Class 6 to 8 weight segments in North America will contract by about 15 percent this year from 425,000 in 2015. Daimler sells trucks under the Daimler, Freightliner, and Western Star names in the U.S.

“These workforce adjustments are expected to be temporary and workers will have first rights to be recalled when production is able to sustain a higher build rate,” the company said in a statement.

The biggest cutback will be at the Freightliner truck factory in Mount Holly, N.C., where 600 workers will be furloughed.

About 200 workers will lose their jobs at the North Carolina Components and Logistics facility in Gastonia, N.C.

A Western Star Truck factory in Portland, Ore., will shed 170 jobs.

The company will let 270 workers go at a factory in Santiago, Mexico.

The last day of work at the Portland and Mount Holly facilities will be July 1, the last day of work at the Gastonia facility will be June 24, and the last day of work at the Santiago plant will be June 29.

Daimler said it has no plans for additional layoffs at the company’s North American facilities in Cleveland, North Carolina or Saltillo, Mexico.

Although it is making workforce adjustments, Daimler said its share of the North American heavy truck market rose to 41.9 percent through the first four months of this year compared to 39.4 percent for all of 2015.

Daimler Trucks achieved record earnings of 2.7 billion euros and sales of 502,500 vehicles last year.

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