Daimlerchrysler could lay off up to 16 per cent of the workers in its North American truck operations next year due to an expected downturn in demand, the head of its truck operations said last night.
Andreas Renschler also said Chrysler Group CEO Tom LaSorda has the board's backing as the company's US unit prepares a turnaround plan intended to address swollen inventories and a drop in sales of almost 8 per cent this year.
Mr Renschler said the potential for up to 4,000 job cuts in the truck operations would include 800 layoffs that have already been announced and that will take effect in March.
Daimlerchrysler, the world's largest commercial truck maker, employs about 25,300 in its truck operations in the United States, Canada and Mexico.
Mr Renschler said industry-wide truck sales are expected to fall in 2007 but then rise again ahead of the introduction of even tighter US emissions standards scheduled to take effect in 2010.