Freightliner Incurs Big First Quarter Loss
DaimlerChrysler subsidiary Freightliner, a supplier of diesel engine motorhome chassis, incurred a big financial loss during the first quarter.
The German-American auto and truck builder did not reveal the amount of Freightliner’s loss during the first three months of this year, according to the Wall Street Journal (WSJ) newspaper. However, DaimlerChrysler reported that Freightliner’s loss outweighed the profits earned by the parent company’s commercial vehicle operations outside the U.S. The result was a first quarter loss equivalent to $123 million at current exchange rates, according to the WSJ.
During the first three months of last year, DaimlerChrysler’s commercial vehicle business earned the equivalent of $230 million at current exchange rates.
In its first quarter financial report, DaimlerChrysler said Freightliner’s difficulties are largely due to the demand for heavy trucks declining by more than 50% since 1999 in the combined U.S.-Canada-Mexico market.