Daimler Said Truck-Market Slump in U.S. May Last Eight Years

STUTTGART, GERMANY – Daimler AG has predicted that the U.S. market for heavy-duty vehicles won’t rebound to the peak sales levels of 2006 for at least five years, according to Bloomberg. The U.S. truck market has declined about 60 percent since hitting a peak two years ago and will probably be virtually unchanged from this year’s levels in 2009, said Andreas Renschler, head of Daimler’s trucks division.

Daimler, based in Stuttgart, Germany, is closing two North American truck factories, shuttering its Sterling brand and cutting 3,500 jobs to adjust to the weaker market. The restructuring measures are aimed at trimming costs by $900 million a year by 2011. Renschler reiterated Daimler’s goal of achieving earnings before interest and taxes of 1.7 billion euros ($2.15 billion) this year.