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GROUNDBREAKING NEWSSaying Goodbye to SterlingDaimler Discontinuesthe Brand in 2009Parting ways is never easy, but difficult times can call fordifficult decisions, like Daimler Trucks North America’s(DTNA) decision to focus on a two-brand strategy and saygoodbye to the Sterling Trucks product line.The comprehensive plan aims to adjust and strengthen companyoperations in response to continuing depressed demandacross the industry and structural changes in the company’score markets. The Sterling Trucks brand will be discontinuedin March 2009. Sterling models have substantial overlap withofferings in the Freightliner Trucks product line. Launched in1998, Sterling has only achieved a quarter of the Freightlinernameplate’s market penetration despite ongoing improvementinitiatives and product launches.Additions to the Freightliner and Western Star product rangeswill be made to address market segments that have beenserved exclusively by Sterling offerings in the DTNA stable.“It is a principle of our ‘global excellence’ strategy tostrive for benchmark profitability and to address structuralmarket changes in a timely and consequent way,” said AndreasRenschler, Member of the Board of Management ofthe Daimler, responsible for Daimler Trucks. “We are confidentthat this forward-looking strategy for DTNA is theright measure to address the challenges in the North Americanmarket.”“Plans based on an expectation of brief, sharp marketevents driven by regulatory change, followed by periodsof reasonable growth, are out-of-step with the emergingrealities of the latter part of this decade,” said Chris Patterson,President and CEO of DTNA. “We’ve examined everypart of our organization in light of the changed economicenvironment.”DTNA expects that the Sterling dealer network will continueto perform warranty repairs and maintenance services,supply replacement parts and provide technical support forSterling Truck owners. Dealers will continue to accept ordersuntil Jan. 15, 2009. New truck sales will continue until presentdealer stocks are depleted.As a result of the decision to discontinue the Sterlingbrand, the St. Thomas, Ontario, plant will cease truck manufacturingoperations in March 2009, concurrent with theexpiration of the existing agreement with the Canadian AutoWorkers members employed there. The plant manufacturesSterling medium- and heavy-duty trucks. DTNA will alsoclose the Portland, Ore., truck manufacturing plant in June2010, when current labor contracts expire.Western Star commercial production will be assigned tothe company’s Santiago, Mexico, plant, while production ofFreightliner-branded military vehicles will take place at oneof the company’s manufacturing facilities in the Carolinas bymid-year 2010. A migrating supplier base and high logisticscosts have had a major impact on the cost of production inthis location.The end of production at the 39-year-old Portland manufacturingplant will not affect the location or operation of thecompany’s headquarters in the same city. The company recentlycompleted the relocation of sales, marketing and customersupport functions to Fort Mill, S.C., leaving 2,200 employeesengaged in administration, product development, procurement8 Utility Contractor | January 2009