PORTLAND, Ore. (Aug. 15, 2000) — Freightliner LLC will lay off nearly 4000 production workers including 692 at its truck plant in St. Thomas, Ont., in response to the company’s expectations that heavy-duty truck sales will decline by as much as 25% this year.

Freightliner, North America’s largest heavy-truck manufacturer, will discontinue third-shift operations at its truck manufacturing plants in Portland, Ore., Cleveland, N.C., Mt. Holly, N.C., and St. Thomas, Ont., as well as at its parts manufacturing plant in Portland. The company will also discontinue weekend shifts at its parts manufacturing plant in Gastonia, N.C.

The move will affect 3745 employees starting Oct. 20 at the U.S. facilities, and on Dec. 4 at St. Thomas.

Freightliner currently employs 20,141 people across North America. The cuts are considered permanent, although if demand rises again and the company needs more employees, the workers being cut would be afforded the first chance at jobs, Freightliner said.

The company’s Portland and Cleveland, N.C. plants make Freightliner’s heavy-duty trucks. The Mt. Holly, N.C., plants make Freightliner medium-duty trucks. The St. Thomas location produces the company’s Sterling-brand heavy- and medium-duty trucks.

Industrywide, North American heavy-truck output dropped to a 270,000-unit annual pace in the first half from a record 316,000 for all of 1999.

Other North American truckmakers responded more quickly to the slumping market. Paccar Inc. laid off as nearly 400 workers and managers at its Tennessee plant. International Truck and Engine has cut 400 workers at its plant in Chatham, Ont.