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Freightliner to Cut 1,120 Jobs

by Staff
July 20, 2001
1 min to read


Freightliner LLC will cut the jobs of 1,120 employees at four North American manufacturing plants between July and October. The company notified the workers on June 27 that the layoffs were coming due to difficult market conditions in North America. In a statement released by the company, Freightliner said sales of heavy-duty trucks were down 45 percent from a year ago, and medium duty truck sales had dropped 21 percent. The layoffs will take place in Freightliner's Mount Holly, NC (475 employees) and Santiago Tianguistenco, Mexico (284) plants, a Sterling Trucks plant in St. Thomas, ON (181), and at a Western Star plant in Kelowna, BC (180). Production will be dropped at each plant as well. Although the most recent round of Freightliner layoffs is considered permanent, Freightliner spokesman Chris Brandt said workers would be called back based on seniority if the economy picks up. Brandt said the company would continue to pay health and life insurance benefits for the displaced employees for six months. Manfred Gentz, CFO of Freightliner's parent company, DaimlerChrylser AG, said last week he expects to have a turnaround plan in place for the company's Freightliner heavy-trucks unit within the last few months of this year. According to Gentz, Freightliner is one of the company's "most difficult holdings at the moment."

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