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    AMU: Daimler closure, International sale reshape truck manufacturing

    Written by Nicholas Bell


    This piece was first published by Aluminum Market Update (AMU), SMU’s nonferrous sister publication. To learn about AMU, visit their website or sign up for a free trial.

    Daimler Truck North America plans to close its Portland, Ore., commercial truck manufacturing operations, while International Motors has agreed to sell its Springfield, Ohio, assembly facilities to Roshel.

    The announcements affect two established US commercial vehicle production sites.

    Daimler will permanently end operations at its Portland facilities, while International will leave Springfield after selling the properties and most assets to Canada-based armoured vehicle manufacturer Roshel.

    Daimler to end Portland plant production

    Daimler Truck North America will permanently close its Portland Truck Manufacturing Plant and related operations, according to a Worker Adjustment and Retraining Notifications (WARN) filing submitted in Oregon.

    Daimler expects operations to cease Oct. 30, with employee separations beginning the same day.

    The filing covers the truck manufacturing plant on North Fathom Street, a Custom Truck Services (CTS) operation on North Basin Avenue, the Drop Lot on North Channel Avenue, and a warranty recovery operation on North Cutter Circle. Daimler considers the facilities a single site of employment for WARN Act purposes.

    The Portland truck plant produces trucks for Daimler’s Freightliner and Western Star brands.

    Oregon Public Broadcasting reported that Daimler plans to transfer Portland truck production to facilities in North Carolina and South Carolina. AMU asked Daimler to confirm the reported transfer and whether it includes production of the Western Star X-Series and Freightliner eCascadia and eM2 product lines. The company had not responded by publication time.

    Daimler truck manufacturing footprint

    Before the planned closure, Daimler Truck North America operated four truck manufacturing plants in the US.

    Two of the remaining truck plants manufacture Freightliner vehicles. The third produces Thomas Built Buses, a school bus brand. Daimler also operates two truck manufacturing plants in Mexico.

    Elsewhere in its US production network, the company operates a cab and chassis manufacturing plant in North Carolina and a custom chassis manufacturing plant in South Carolina. Its other North American locations consist primarily of parts and distribution centers and support facilities.

    The Portland closure comes as Daimler Truck North America reported lower truck sales during the first quarter.

    The segment sold 29,432 units during the quarter, down from 38,992 units a year earlier. US sales declined 20% year over year to 26,741 units. Canadian sales fell to 1,091 units from 3,749 units, while Mexican sales decreased to 735 units from 1,699 units.

    International to sell Springfield facilities

    International Motors will sell most assets at its Springfield Assembly Plant and Truck Specialty Center to Roshel, according to a WARN filing submitted to Ohio officials.

    The transaction is expected to close Oct. 2.

    International Motors, formerly International Navistar, operates as part of Germany-based Traton Group, which is majority owned by Volkswagen Group.

    The subsidiary plans to conclude its Springfield operations and terminate virtually all employees at the two facilities on that date.

    International stated that the Springfield locations are not closing because Roshel intends to begin operations there after the sale. Still, Roshel’s plans do not prevent International from terminating its employees when the transaction closes.

    The notice does not state when Roshel expects to begin production or which products the company will manufacture at the acquired facilities, though Roshel’s product portfolio is generally focused on Smart Armored Vehicles.

    International truck manufacturing footprint

    International’s North American production network includes an assembly plant in Mexico, a powertrain plant in Alabama, and a manufacturing plant in Texas. The company also operates a school bus plant in Oklahoma.

    The Springfield plant represents International’s medium- to heavy-duty truck assembly operation. Following the sale, the company’s remaining listed facilities outside those production sites consist mainly of distribution and support services.

    The company reported second-quarter sales of 16,162 units, down from 17,621 units a year earlier. Truck sales declined to 13,130 units from 14,628, while bus sales increased to 3,032 units from 2,993.

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