Daimler

FT Oct/15/08

The German automobiles group yesterday announced that it would slash 3,500 of the 21,000 jobs at its North American truck business.
It intends to close two plants in the US and Canada and to cut administrative costs related to the Sterling brand.

The move followed similar decisions by some of Daimler's competitors after the industry has been hit by a slowdown not only in the US but most recently also in Europe.

Volvo Trucks is cutting more than 20% of its European blue-collar staff, and MAN is reducing this year's production.

Mr. Renschler, head of Daimler's truck business said that no similar moves should be expected for Daimler in Europe. "We are much better prepared in Europe as far as flexibility is concerned," he said.