Daimler Trucks dropping Sterling line

Daimler Trucks North America (DTNA) today announced the company would focus on a two-brand strategy in an effort to cut costs and streamline operations. The two brands are Freightliner and Western Star. Sterling, which was based on Ford’s heavy truck operations that were purchased by Freightliner in the late 1990s, will be discontinued effective March 2009. The St. Thomas, Ontario, plant will be closed at that time and the Portland, Oregon, plant will be closed in June 2010. Both closings are timed to coincide with expiration of union agreements. About 3,500 jobs will be lost in the reorganization.

DTNA first-half sales were down 30 percent, according to company officials.