Freightliner to layoff 900 factory workers in North Carolina
Story by:@ FreightWaves
Daimler Trucks North America latest to react to slumping new truck orders.
Daimler Trucks North America will cut 900 workers at two Freightliner plants in North Carolina as tepid orders for new heavy- and medium-duty trucks persist following a record ordering binge in 2018.
Freightliner, which holds a commanding lead in market share over its competitors, is the fourth of six major truck makers to curtail production. Only Paccar Inc. (NASDAQ: PCAR) units Peterbilt Motors Co. and Kenworth Truck Co. have avoided production cuts so far.
“Following a red-hot North American truck market of record sales and production volumes over the last 12 months, the market is now clearly returning to normal market levels,” DTNA said in a statement.
The unit of Stuttgart, Germany-based Daimler AG (OTC: DDAIF) will release approximately 450 production workers, or nearly 16% of the workforce at its Cleveland, North Carolina, manufacturing plant and approximately 450 workers, or 26% of the employees, in Mt. Holly, North Carolina. Both layoffs are set for October 14.
The Freightliner layoffs reflect a dramatic drop in the backlog of heavy- and medium-duty trucks waiting to be assembled.
The wait time across the industry for the delivery of a new truck was an estimated 11 months in October 2018 when the backlog stood at 288,000. That number is expected to shrink to about 135,000 when final September orders are calculated, down from 151,000 in August, according to Kenny Vieth, president of ACT Research.
A Daimler spokeswoman declined to discuss how many Freightliner orders are in the queue. On the retail side, sales were down 21.2% in August, according to WardsAuto.com. – According toand his article in the freightwaves.com
Read the full story and more HERE
Source and credits: freightwaves.com // iTrucker / Mario Pawlowski