Freightliner to Adjust Medium Duty Truck Production, Workforce

Portland, Oregon…North America’s largest commercial vehicle manufacturer, Freightliner LLC, today announced it was adjusting the workforce levels downward at its Mt Holly, North Carolina medium duty truck manufacturing plant to align output with a slowing market demand for medium duty trucks in the U.S. and Canada.

The daily production rate at the plant will be trimmed to 100 trucks per day on September 26, 2005, – a reduction of 17 percent from the current 120 per day. A total of 260 jobs will be eliminated.

Currently, 1540 employees represented by the United Autoworkers assemble the Freightliner-branded line of Business Class M2 vehicles designed for a variety of urban, short haul, and vocational applications. The furlough of these 260 positions will return the plant to the employment level of August 2004.

“While the Freightliner Business Class M2's share of the medium duty truck market in the U.S. and Canada has increased from 10.8 percent in 2004 to 11.5 percent year to date, the recent growth in this segment has slowed, hindered by rising diesel prices and economic uncertainties,” said Freightliner’s Chief Operating Officer, Roger Nielsen. “However, orders for heavy duty Class 8 trucks and large fleet sales continue to perform strongly,” he added.

Freightliner currently employs close to 9,000 people in North Carolina and is a major customer of automotive components manufactured by several industries in the state.

Freightliner LLC, headquartered in Portland, Oregon, is the largest heavy-duty truck manufacturer in North America and a leading producer of medium-duty and specialized commercial vehicles. It produces and markets Class 3-8 vehicles under the Freightliner, Sterling, Western Star, American LaFrance, and Thomas Built Buses nameplates. Freightliner is a business unit of DaimlerChrysler, the world's leading commercial vehicle manufacturer.

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