Globalisation...Daimler to drop the Sterling Trucks brand in 2009. Biglorryblog offers his thoughts on the matter..

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It's amazing what happens when I go away on holiday. No sooner does Biglorryblog depart for a week's R&R than Daimler announces that it's to 'discontinue' the Sterling Trucks brand in the US early next year, consolidating its North American truck plants along the way too.

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It's 'Globalisation' Jim in case you haven't heard of it and is (I suppose) a natural response to the current economic situation where nobody is making  any kind of money out of truck manufacturing (especially in the States).

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"It is a principle of our 'Global Excellence' strategy to strive for benchmark profitability and to address structural market changes in a timely and consequent way", Andreas Renschler, member of the Board of Management of the Daimler AG, responsible for Daimler Trucks tells BLB. "We are confident that this forward-looking strategy for Daimler Trucks North America is the right measure to address the challenges in the North American market." Daimler originally launched the Sterling brand back in 1998 having bought the old Ford heavy-duty truck business.

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I wonder what the Aussies and Kiwis think of this move as Sterling seems to be quite a popular enough brand down-under? Indeed I recall Vic Hungerford waxing lyrical on the old Ford Louisville he once drove....so what's the word from my antipodean army?

Meanwhile, there are three key planks to this DTNA plan. First off, as already stated above, the Sterling Trucks brand will be discontinued from March 2009---so from that time you won't be seeing any more new examples of these babies.... now click through here for more and a quick pie quiz...

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Next, having dropping Sterling, DTNA says it will concentrate on its remaining Freightliner and Western Star brands--indeed it says: "Additions to the Freightliner and Western Star product ranges will be made to address market segments that have been served exclusively by Sterling offerings in the DTNA stable." There's more bad news to come as the Sterling plant at St. Thomas, Ontario, which builds medium and heavy duty Sterling trucks will cease truck manufacturing operations in March 2009. And that's not all. DTNA will also close its 39-year-old Portland, Oregon, Truck Manufacturing plant, in June 2010, when current labour contracts expire.

Western Star commercial production will ultimately end up in DTNA's Santiago, Mexico plant, while production of Freightliner-branded military vehicles will take place at one of the company's facilities in the Carolinas by mid-year 2010.  Meanwhile, start of production at DTNA's new Saltillo, Mexico manufacturing plant will occur as planned in February 2009. The plant will produce Freightliner's new flagship Cascadia model. The upside is that these changes are expected to result in annual earnings improvements of $900 million by 2011, with estimated program costs of $600 million. The downside is that an estimated 2,300 workers at the St. Thomas and Portland plants will be affected by the closures by mid-2010. This figure includes 720 workers at the St. Thomas plant to be laid off in November 2008 as already announced in July. The company also plans to reduce its salaried workforce by approximately 1,200 positions, with over half directly related to the Sterling brand. "A voluntary separation program will be available as well as other measures to offer flexibility and choice to affected employees."

 

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It's certainly a sad story as only last year Sterling was telling the world about the sale of its 250,000th truck to Con-way Freight a Sterling customer for more than 10 years. And this picture shows that happy handover ceremony at the Sterling plant in Ontario...

 

And as for that pie quiz...tell me what you know about the little Sterling 360 flatbed truck at the top--namely what is it otherwise known as? 

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2 Comments

Michael Yamnitz

Mitsubishi Fuso, another Daimler product, don't know the specific model.

anomnibus

To quote John Cleese - "Don't mention the war!"

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This page contains a single entry by BigLorryBlog published on October 19, 2008 10:28 AM.

Quick Commercial Vehicle recovery with WH Malcolm and Biglorryblog. That's using the old noggin! was the previous entry in this blog.

News from Uganda! Jerry's Friday drinkies is disturbed. And he's never heard of Ken Thomas either gasps Biglorryblog! is the next entry in this blog.

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