DaimlerChrysler Subsidiary to Cut 2,700 Jobs and Close Three Truck Plants
Freightliner LLC, the North American truck subsidiary of DaimlerChrysler's Commercial Vehicles Division, announced a comprehensive restructuring program designed to return the company to sustainable profitability. Freightliner will close its Woodstock, Ontario, school bus assembly plant in the fourth quarter of 2001, and the Kelowna, British Columbia, truck assembly plant in the third quarter of 2002. Freightliner also plans to close its Portland, Ore., parts manufacturing plant in mid 2002, pending discussions with the local unions. As a result, 1,600 hourly employees and 1,100 salaried employees will be laid off. The restructuring plan is targeted to deliver annual savings at an operating level of $850 million by 2004.