Daimler cuts ribbon at new Mexican plant

SALTILLO, Mexico — Daimler Trucks North America opened a new manufacturing plant in Saltillo, Coahuila, in northern Mexico last week.

The plant will produce Freightliner’s new flagship Cascadia heavy-duty Class 8 truck. Its potential capacity is 30,000 Cascadia trucks annually, on two shifts, for sale in the U.S., Canadian, and Mexican markets. The plant is presently in ramp-up mode, building eight trucks a day.

The Saltillo plant is the second Daimler Trucks North America manufacturing facility to be located in Mexico, joining the Santiago Tianguistenco plant, which produces Freightliner-branded heavy and medium-duty trucks for domestic Mexico sales, as well as for export to Latin America, the United States, and Canada. When DTNA’s Portland, Oregon plant closes next year, production of Western Star trucks will move to the Santiago facility.

"With the new Daimler Trucks North America production plant in Saltillo, Mexico, Daimler Trucks is improving its competitive position on the North American continent over the long term," said Andreas Renschler, member of the Daimler AG Board of Management and Head of Daimler Trucks, during the grand opening ceremony in Saltillo.

The decision in favor of northern Mexico was also influenced by the site’s significant logistical advantages, including proximity to raw material sources, suppliers, and customers, as well as good connections with the road and rail network.

The plant in Saltillo covers 1.3 million square feet of space and includes a production facility, a logistics center, administration building, and a training center.

Later this month, Daimler will go ahead with plans to close its Sterling assembly plant in St. Thomas, Ont. The truckmaker cited a downturn in the North American economy for the closure, but also hinted at uncompetitive labor costs.

Unionized workers in Canada make more than 10 times what Mexican workers get to build a truck.

The plant is larger than required to build Cascadia trucks, having been conceived to assemble Sterlings as well. DTNA has no plans to build anything else there at present, but rules nothing out for the future.