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Daimler U.S. unit launches output at heavy truck plant in Mexico

SALTILLO, COAHUILA, Mexico, Feb 27 (SNS) – Daimler Trucks North America, formerly Freightliner LLC—a unit of Daimler AG (DAI), a major maker and seller of commercial vehicles, disclosed the firm opened its new $300.0 million plant here today that will manufacture heavy-duty trucks for the U.S., Canadian, and Mexican markets.

The plant will produce Freightliner's new flagship, the Cascadia-model truck and will have the ability to build up to 30,000 units of the model per year. It also will create 1,400 new jobs. The Cascadia is slated to go on sale in Mexico during late 2009, Daimler disclosed.

The Saltillo plant is the second Daimler Trucks North America manufacturing facility to be located in Mexico, joining the Santiago Tianguistenco plant, which produces Freightliner-branded heavy and medium-duty trucks for domestic Mexico sales, as well as for export to Latin America, the United States, and Canada.

The firm broke ground on the plant more than two years ago and said the facility was completed on time. It covers 1.3 million square feet of space and includes a production facility, a logistics center, administration building, and a training center.

As reported, the Daimler unit confirmed last October 14 it would close two medium and heavy-duty truck assembly plants in North America—hurting thousands of hourly jobs—and kill its Sterling brand by 2010, in response to an ongoing sales slump. The firm said it permanently will halt assembly at a heavy-duty truck plant in Portland, Ore., by June 2010, when the current labor contracts expire. The firm also said it will shut another site in St. Thomas, Ont. by March 2009, following the expiration of a similar deal with the Canadian Auto Workers union. It will also permanently halt production of the Sterling-badged medium and heavy-duty trucks at the same Ontario site.

The firm’s Western Star commercial truck production at Portland will be shifted to the company’s new site in Santiago, Mexico, while assembly of Freightliner-branded military vehicles will occur at one of the company's facilities in the Carolinas by mid-year 2010. Production at Saltillo, Mexico was expected to start this month.

As reported, Daimler’s U.S. truck unit declined to comment last July 24 on unconfirmed internal reports the company was planning to close St. Thomas, after the firm disclosed plans to shed 720 jobs—nearly half of its workers—at the facility during the last quarter of this year over decline in demand for the vehicles.

As reported, Daimler Trucks North America reconfirmed on the eve of the 2008 Mid-America Trucking Show plans to launch final production of Freightliner Cascadia-model heavy-duty trucks by last December at the new $300.0 million site in Saltillo. The firm acknowledged the plant, capacitized at 40,000 units annually on three daily work shifts, would supplement output of Class 8-type trucks at Cleveland, N.C., as the Cleveland facility would become capacity constrained on the upside of a new business cycle, which likely will begin in 2010.

It also said at the time full production capacity use of 40,000 units per year may not occur until 2015, when Sterling-branded Class 8-type trucks are added to the assembly mix at Saltillo.

The company said last October it expects 2,300 workers at St. Thomas and Portland will be laid off by mid-2010, due to the plant closures. It includes 720 workers at the St. Thomas plant which were cut late last year, as previously disclosed. Nearly 1,200 salaried workers lost their jobs, with over half related to the Sterling brand.

Daimler Trucks North America expects the cuts to cost the firm nearly $600.0 million. But it sees improvement to its annual earnings of $900.0 million by 2011, as a result of the changes, it added.

As reported, Daimler Trucks North America confirmed to Stark's News Service Interactive the firm rehired some hourly workers last year at Cleveland, despite the soft U.S. truck market. Daimler Trucks North America said the firm would rehire 650 workers at Cleveland by last September 2 to meet increased demand of the new Freightliner Cascadia-model truck.

The recall came after the firm started furloughing nearly half of its workforce at the same site last June. However, the firm said last August it would replace a partial second shift at the Cleveland site, despite the current market conditions. Employment at the site was expected at 1,985 once the second shift resumed, the company added.

As reported last July, Daimler Trucks North America obtained an order for undisclosed value to supply 300 units of Freightliner Cascadia Class 8-type trucks by this year to Wal-Mart Stores Inc. (WMT).

As reported, the U.S. truck-maker shifted 13.4 per cent of its salaried jobs, or 341 positions, from Portland last year to a new location in South Carolina near its existing truck-making site. The company assured Freightliner's headquarters would continue to be based in Oregon despite the move of the sales and marketing positions. As reported, Daimler Trucks North American reportedly renewed a 40-year lease in 2006 for its headquarters in Portland in the Swan Island Industrial Park.

(Thanks for the info. John)

 

 
Here's why we need the Employee Free Choice Act.

The Employee Free Choice Act, supported by a bipartisan coalition in Congress, would enable working people to bargain for better benefits, wages and working conditions by restoring workers’ freedom to choose for themselves whether to join a union. It would:

  • Remove current obstacles to employees who want collective bargaining.
  • Guarantee that workers who can choose collective bargaining are able to achieve a contract.
  • Allow employees to form unions by signing cards authorizing union representation.
 
 
List of  Officers and Delegates for Local Lodge 1005 for 2007-2010   

President :                    Frank Rouse

                                  

Vice President :            Ray Simonis

 

Recording Secretary :   Fred MacKenzie

 

Secretary-Treasure :     Gene McGlothlin

 

Conductor-Sentinel :     Mike White

 

Auditors                       Jose Canul

                                    Marcia Keck

                                    Shellia Dedmon

 

Trustees                       Ray Simonis

                                    Cheryl Rouse                                  

                                    Richard Brandt

 

NOLC Delegates         Britt Cornman

                                    Frank Rouse

                                    Joe Kear

.                                   Joe Estes

                                    Gene McGlothlin

                                    Cheryl Rouse

 

OMC  Delegates            Britt Cornman

                                    Joe Kear

                                    Fred MacKenzie

                                    Frank Rouse

 

District 24 Delegates     Joe Estes

                                     Marcia Keck

                                     Fred MacKenzie

                                     Gene McGlothlin

                                     Joan Miller

                                     Tony Mims

                                     Gil Robles

                                     Chris Taylor