OTTAWA — Daimler, the world’s largest maker of heavy vehicles, announced plans on Tuesday to eliminate its Sterling truck brand and shift production from the United States to Mexico, moves that will cut about 3,500 jobs in Canada and the United States.þþThe head of Daimler Trucks, Andreas Renschler, said that about 88,000 heavy trucks had been idled in the United States since January, a clear indication that the industry was undergoing a significant and perhaps permanent change.þþ“It would be bad leadership to ignore today’s economic realities,” Mr. Renschler told a conference call for analysts and reporters. “It’s a whole new game now.”þþAbout 1,300 layoffs will come in March when Daimler closes a Sterling factory in St. Thomas, Ontario, according to the Canadian Auto Workers, which represents those employees. About 720 workers at that plant have already been told that they will be laid off next month, when a shift is scheduled to be eliminated.þþKen Lewenza, the union president, said that Daimler did not notify the union in advance and that most of his members learned about the closing through the news media. He said that the union would press the company to reconsider next week.þþ“This is another log on the fire,” Mr. Lewenza said. “Ontario is going through a crisis in manufacturing.”þþDaimler will also move production of most Western Star brand trucks from Portland, Ore., to Santiago, Mexico, in June 2010. þþIn addition to the factory layoffs, Daimler will cut about 1,200 salaried jobs, about half of those at Sterling.þþ
Source: NY Times
