Daimler Trucks North America (DTNA) announced this week 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.
"Plans based on an expectation of brief, sharp market events driven by regulatory change, followed by periods of reasonable growth, are out-of-step with the emerging realities of the latter part of this decade," said Chris Patterson, President and CEO of Daimler Trucks North America. "We’ve examined every part of our organization in light of the changed economic environment."
The Sterling Trucks brand will be discontinued effective March 2009. Sterling models have substantial overlap with offerings in the Freightliner Trucks product line. Launched in 1998, Sterling has only achieved one-fourth of the Freightliner nameplate’s market penetration despite ongoing improvement initiatives and product launches.
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. Patterson said design additions to Freightliner and Western Star trucks would make them viable for the specific niche applications currently filled by Sterling models.
DTNA expects that the Sterling dealer network will continue to perform warranty repairs and maintenance services, supply replacement parts and provide technical support for Sterling Truck owners. Dealers will continue to accept orders until Jan. 15, 2009. New truck sales will continue until present dealer stocks are depleted, the manufacturer said.
By concentrating the company’s considerable technical and marketing resources on a more focused model line-up, DTNA said it 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.