CHICAGO — DaimlerChrysler AG's Freightliner LLC unit, largest maker and seller of heavy-duty commercial trucks in North America, expects to lose a record $1.20 billion for all of this year, and may permanently close two truck and parts-making facilities in Portland, Ore., Stark's News Service Interactive (http://www.starks-news.com) reported today.
The automotive newswire said Freightliner generated an operating profit of $900.0 million last year.
It said Freightliner executives revealed the dire financial outlook last Monday and last Wednesday in separate meetings with local and state officials, and with a group of union officials at two Freightliner-owned facilities in Portland.
Stark's reported that Freightliner is seeking to reopen a three-year labor contract with unionized workers at the Portland plants to reduce wages, kill bonuses and future wage hikes-to possibly save the two Portland sites from permanent closure. There was no guarantee that the closures would be avoided, the news service added.
Stark's said spokesmen for DaimlerChrysler and Freightliner previously have declined to comment on reports about Freightliner's looming restructure.
The news service, citing company sources, said Freightliner lost more than $520.0 million during the first half of this year and does not expect to fully implement a recovery program, now in the final stages of formulation, until it is submitted to the parent firm's board during the second week of October 2001 for approval and formal adoption.