Freightliner restructuring plan expected as early as tomorrow

FRANKFURT (Oct. 10, 2001) — DaimlerChrysler has finalized plans to restructure Freightliner LLC, its North American trucking subsidiary, Financial Times reported today.

The company will announce the restructuring “in a matter of days,” the report said.

Freightliner officials have told Today’s Trucking that an announcement to key management could come as early as today, followed by a public statement tomorrow.

The restructuring is expected to include plant closures. Freightliner operates six commercial truck plants, including two in Canada. Sterling trucks are produced in St. Thomas, Ont., and Western Star trucks are made in Kelowna, B.C. The company also builds Orion buses in Mississauga, Ont.

Meantime, Freightliner has been asking customers to renegotiate contracts that guaranteed residual values when the vehicles were traded in, according to a Wall Street Journal report. Freightliner has proposed that fleets keep their trucks an extra year or two and accept less money from Freightliner when they do return them.