ST. THOMAS, Ont. — Freightliner LLC says it will lay off about 800 workers at its Sterling Trucks assembly plant in St. Thomas, Ont.

Like most truckmakers, the company is preparing for an industry-wide slowdown in 2007 as customers look to avoid new, more expensive, low emissions engines that hit the market in the New Year. Many fleets pre-bought equipment in 2006 or will take a wait-and-see approach with the new technology.

These changes are the first in a series of such measures that could eventually affect as many as 4,000 Freightliner production and related workers.

The Sterling plant produces the medium-duty Acterra and the Class-8 HX model.

“It is clear that all residents of North America benefit from the cleaner atmosphere that will ultimately result, but it is equally obvious that the costs associated with this worthy initiative are borne almost entirely by the truck manufacturing industry’s employees, suppliers, shareholders and dealers,” the company said in a press release.

Toronto-born Freightliner CEO Chris Patterson said he regrets the layoffs.
“Unfortunately it has become necessary at this point as the entire industry is dealing with an extraordinary market situation.

“We will continue to monitor the market closely and make adjustments accordingly, but we anticipate further reductions of up to 3,200 workers in the first few months of 2007.”

As expected, Navistar International also issued notices to 700 employees at its heavy-duty assembly plant in Chatham, Ont.

The company first warned it could slash jobs in September when it issued an alert to comply with requirements of the Ontario Employment Standards Act (ESA).

Patterson said he hopes demand could pick up in late 2007 as “customers gain confidence in the new technology, and their existing vehicles suffer the effects of aging.

“We expect to be able to make some positive workforce adjustments at that time.”