Daimler to Close Sterling Trucks

Daimler has decided to discontinue its Sterling Truck division in North America next March, a move that will result in the loss of 3,500 jobs. Daimler will close Sterling production plants in Portland, Ore., and St. Thomas, Ontario, Canada.

According to a Bloomberg report, the German company will retain the Freightliner and Western Star brands in the region. “Conversely, with costs at European plants running at lower levels, Daimler is better prepared to cope with a shrinking market there,” Andreas Renschler, head of Daimler's global truck operations, said on a conference call. “The company is closing its highest-cost plants as it can't wait for possible government bailouts to maintain profit, and expects the remaining brands to pick up customers from Sterling.”