By Simon Kennedy LONDON (MarketWatch) --
German car maker Daimler AG said Tuesday that its Daimler Trucks North America unit will close two plants, shed around 3,500 jobs and discontinue one of its brands in response to continued depressed demand across the industry. The group said it will stop making vehicles under the Sterling Trucks brand in March 2009. It added its St. Thomas, Ontario, plant will cease truck manufacturing at that time, and its Portland, Oregon, plant will also close in June 2010. Daimler said 2,300 workers at the plants will be affected by mid-2010, including 720 previously announced cuts, and the company also plans to reduce its salaried workforce by around 1,200 positions. The group said the plans will cost around $600 million and are expected to result in annual earnings improvements of $900 million by 2011.
With things like this happening it goes to show you that the trucking market needs changes and with that being said I’m predicting that we will see a large increase of used truck purchases over new. Because like Diamler, companies are trying to save money any way they can. And purchasing a slightly used truck over a new truck you save thousands on F.E.T. tax tire tax and other fees. Plus with a soft market the prices of used trucks have dropped dramatically.
For example. Myself Scott Farrell With Lake City Trucks was selling 2006 Pete 379’s 6 month’s ago for 69,000 and 70,000 now we are selling the same trucks for high 50k range. THE POINT. IF YOU CAN BUY, BUY USED AND BUY NOW! Thanks Scott Farrell Lake City Trucks.
