DaimlerChrysler Plans to Restructure Freightliner
DaimlerChrsyler said on Oct. 10 it will present plans to restructure Freightliner, its heavy-duty manufacturing unit, in the next few days.Some analysts say that Freightliner may have incurred losses as high as $1 billion for the year. Analysts also expect Freightliner to downsize to boost profits, and say that the truck maker will more likely cut more jobs and close plants, news services reported. The company has already announced cutting 1,100 jobs at its various facilities.Freightliner’s troubles were caused by its guaranteed buyback policy to improve market share, according to industry observers.The company is pressuring many of its customers to renegotiate sale-repurchase contracts that it contends it can no longer afford, the Wall Street Journal reported. Freightliner has 14,700 employees and 10 plants. In 2000 it sold 136,100 trucks.