Daimler Trucks North America said the company’s previously announced layoffs at its Freightliner production facilities will be “significantly lower” than the 1,300 jobs it had projected earlier this year.
About 340 workers will lose their jobs April 8 at the Freightliner plant in Cleveland, N.C., down from 715 potential layoffs announced in January, according to a report in the Salisbury Post. Potential layoffs at the Gastonia Components and Logistics Plant and the Mount Holly truck manufacturing plant will not take place. As previously announced, Daimler will cut 230 jobs at the manufacturing plant in Portland, Ore.
In January, Daimler announced 1,300 potential layoffs at several facilities. Now, expected layoffs total 600 jobs in Cleveland and Portland.
Although the heavy truck industry is still performing below optimal levels, present order intake and industry leading market share gains have enabled Daimler to reduce layoffs, a company spokesman said.
Daimler expects that market conditions will improve throughout 2013, and the workers could be recalled if orders increase.
“Our flexible, highly scalable manufacturing operations will be ready to recall workers impacted by the layoff if conditions continue to improve,” spokesman David Giroux said.
Despite slower economic and freight growth this year, Daimler’s outlook is driven by the extreme age of the truck population in North America, Giroux said. Presently, the average age of Class 8 trucks is beyond their normal operational lifecycle. Daimler is well-positioned to capitalize on aging equipment replacement needs with the new Freightliner Cascadia Evolution that has been proven to be the industry’s new benchmark in fuel efficiency and performance, he said.