PORTLAND, Ore. — Freightliner is getting out of the fire truck business by divesting its subsidiary American LaFrance, the company has announced.
Freightliner acquired American LaFrance, the fifth largest fire and emergency services vehicle producer in the U.S., in 1995 as part of a corporate expansion.
Freightliner LLC president and CEO, Chris Patterson, announced yesterday that Freightliner has reviewed its product portfolio and has determined the fire apparatus business will not continue to be a core business for the company.
“While the company has been driving improvement programs in recent times and we believe the American LaFrance business has growth and profitability potential, we also believe this potential can be better realized by a company that has a focus on ALF’s core markets," Patterson said. “As a result, we have been in discussion with a number of parties who have an interest in acquiring the assets of ALF and several organizations have emerged as likely investors. Further details will be released as we near a final deal.”
American LaFrance was expected to see its revenues increase by 15 per cent this year thanks to improved production throughput and gains on an existing order backlog.
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