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Mack 3P

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Posts posted by Mack 3P

  1. "The Sterling brand, a maker of medium-sized models which accounts for 15 percent of Daimler's U.S. truck output, "never met expectations,'' Daimler AG spokesman Heinz Gottwick said today. The unit was set up in 1998 from truck operations that Daimler bought a year earlier from Ford Motor Co. With orders remaining on a "downward trend'' and only a "moderate rebound'' foreseen in the U.S. economy in 2009, about 88,000 trucks have been "sidelined'' in North America as companies go bankrupt or are taken over, Chris Patterson, head of the trucks division in the region, said on a conference call. "We're not happy with the achieved return this year'' at Daimler's North American truck business, Patterson said. 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 the 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."

    Bloomberg.com, 2008-10-14

  2. I can't imagine why any company with plants in the U.S. and Canada would want to relocate to Mexico. I remember

    Singer sewing machine co. did that and 6 months later they moved back to Connicut. They said they couldn't get the quality they needed from the workers in Mexico. Maybe Mercedes knows something the rest of us don't.

    Good Day

    Dak49

    Cheap Labor - Expensive Labor = More Profit

    Paccar has a plant in Mexico

    Navistar has a plant in Mexico

    Volvo has a bus plant in Mexico (Speculation they will move truck production there in the future)

    Freightliner has two plants on Mexico

    I think Mack and International will profit the most without the Sterling brand in the market.

    Western Star is going from a Canadian truck brand to Mexican... eh

  3. Daimler To Drop Sterling Truck Brand

    DTNA announces major restructuring; Sterling brand to be discontinued. Daimler Trucks North America (DTNA) today announced a comprehensive plan to adjust and strengthen company operations in response to continuing depressed demand across the industry and structural changes in the company's core markets. The measures to be implemented address key areas of DTNA's operations:

    The Sterling Trucks brand will be discontinued effective in March 2009. 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. By concentrating the company's considerable technical and marketing resources on a more focused model line-up, DTNA expects to drive an even more attractive program of innovation in safety, environmental impact, and user productivity that will further strengthen the leadership position of Daimler Trucks in the North American commercial vehicle market.

    As a result of the decision to discontinue the Sterling brand, the St. Thomas, Ontario, plant will cease truck manufacturing operations in March 2009, concurrent with the expiration of the existing agreement with the Canadian Auto Workers members employed there. The plant currently manufactures Sterling medium and heavy-duty trucks.

    DTNA will also close the Portland, Oregon, Truck Manufacturing plant, in June 2010, when current labor contracts expire. Western Star commercial production will be assigned to the company'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.

    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.

    As a result of the measures cited above, DTNA expects to achieve annual earnings improvements of $900 million by 2011. The EBIT effects amount to $600 million in total: approx. $350 million against the fourth quarter of 2008 (including approx. $300 million, which are primarily related to employee and dealer separation), $150 million in 2009 as well as expenses of $100 million in 2010 and 2011 in total.

    An estimated 2300 workers in the St. Thomas and Portland plants will be affected by mid-2010, on timelines related to the plant closures noted above. 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 1200 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. Daimler news release, 2008-10-14

  4. I'll try to sumarize what I know compared to what the papers are saying. I'll share more as I learn more.

    The CHU, CXU will move to Macungie from the Volvo New River Valley plant. They expect job losses at NRV. Macungie will add some new jobs. The Mack in NRV has not work so good. Every year someting changes. Last year the line was changed so that Macks and Volvo's ran on the same line.

    Mack World Headquaters jobs will move to Volvo HQ in Greensboro NC early 2009. They say empolyees will be able to transfer. WHQ employees include Parts, Service, Customer Satisfaction and administrative jobs along with a bunch of other stuff. Customer Engineering which works the special orders is also located in WHQ. They will move to the current Test Center in Allentown. We are told WHQ will be sold once everyone is out. The Test Center will be a "welcome center" for customers to see new trucks.

    The Test Center jobs which is Mack Product Development (engineering, testing, design) will move to Greensboro after we deliver the new US10 truck (early 2010). We are told we have the option to move to Greensboro. The question I have is to what job will be available? Volvo has engineers that do similar work on the Volvo that can just take it on for Macks.

    Today an announcemnt was made of who will be in charge of the move out of Allentown. Coincidently it is the same guy who tried to shut down Allentown a few years ago. When he was put in charge the Allentown staff was cut by close to half.

    Most of the Mack knowledge in Allentown will be lost since most people will not relocate. 10-20% of people transfer when employeers move. Alot of Mack employees are second generation and many have other family members employed by Mack.

    I've also heard (rumor) Volvo is expanding the Bus plant in Mexico.

  5. I've heard on these posts that the U in chu and cxu stood for ultra low sulpher fuel. If I remember right the chu and cxu changed from the chn and cxn in late 2005 or so. Ultra low sulpher fuel didn't start until 2007. Maybee the U stands for upgrade. Maybee someone knows the answer. Just curious.

    The way I understand it CXN became CXP with the MP engine and new cab. The US07 engine made it a CXU. You can get a CHN but there are no CHP's

  6. Bulldog Blues

    I don't think this woman has all the facts. And the Volvo spin that was put on it to deflect the blame make me sick.

    Our feeling here at Mack, Allentown (not Volvo) is this is Volvo’s fault. They are the ones who cut the engineering and design staff in Allentown. Volvo's the one pushing there designs on our trucks, designs that they were unable to sell and make a profit on in North America. At the same time pushing out the Volvo It system so they can charge Mack more money. Volvo IT is one of the most profitable businesses for Volvo. The problem is we're a truck company!

    Sorry for the rant, but the link to this article was the first email I read today (it's going to be one of those days).

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