Freightliner Seeks to Revise ‘Buy Back’ Contracts
Freightliner is pressuring many of its customers to renegotiate sale-repurchase contracts that it contends it can no longer afford, the Wall Street Journal reported.
A DaimlerChrysler spokesman told Reuters it will announce a major restructuring for Freightliner before Oct 20. Daimler's management board is expected to discuss Freightliner’s turnaround plan at a meeting at its company headquarters in Stuttgart, Germany.
The Journal said Freightliner’s growth strategy in the 1990’s had called for it, more than other manufacturers, to guarantee a price at which it would buy back trucks. In this way, it won big fleet orders.
In recent months, Freightliner has told fleets that it can’t honor these buy back contracts, and it has proposed having these companies keep their trucks an extra year or two and accept less money when they are returned, the Journal said.