Portland’s 84-year run of manufacturing Freightliner trucks is coming to an end in October as Daimler Truck North America shuts down two production lines on Swan Island and shifts manufacturing to its factories in North and South Carolina.
With the move, 375 employees will be laid off, concurrent with the shuttering of its Freightliner and Western Star production lines, according to The Oregonian.
Daimler Truck said it will keep its North American headquarters on Swan Island, which includes its new $40 million engineering facility that opened in July.
Company says the move is about consolidation, not Portland itself
In 2019, Daimler started converting the Portland plant to have the ability to manufacture electric trucks, though sales have been lackluster. Daimler stated last week that they represent only 0.5% of its market, according to The Oregonian.
Daimler noted that it’s consolidating manufacturing at larger factories on the East Coast, and the decision wasn’t a reflection of the labor supply or business conditions in Portland.
“It’s a network decision. Portland’s production profile is different from our larger plants,” Daimler Truck spokesperson Robert Sterling said. “It’s not an indictment on Portland and what Portland’s offering.”
The company will pay severance to all of its laid-off workers and noted that some Portland employees may be offered positions at some of Daimler’s larger factories on the East Coast.
Daimler stressed it will maintain a presence in the city
Daimler Truck employs roughly 3,000 people in Oregon. Daimler stated that its factories and supply chains have become increasingly concentrated on the East Coast, which makes North and South Carolina a sound move.
“It’s just best in the long-term path for business,” Sterling said.
Sterling noted that even though production is moving out of Portland, that doesn’t mean the company’s commitment to the city has diminished.
“I can’t reinforce that enough. The commitment to Portland remains strong. We will continue to be here in Portland,” Sterling said, according to The Oregonian. “It’s certainly not the start of any progression.”
This story was originally posted on MyNorthwest.com
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