Freightliner LLC, the heavy truck subsidiary of DaimlerChrysler AG, expects to lose a record $1.2 billion this year, possibly forcing the closure of two plants at the truck maker's headquarters in Oregon, an automotive news service said.
Stark's News Service Interactive reported that Freightliner executives predicted the losses when they met separately last week with state and local officials, and with union representatives at the Freightliner truck factory and a parts plant in Portland.
The news service, citing company sources, said Freightliner lost more than $520 million during the first half of this year.
Stark's also said nearly a third of Freightliner's dealers are facing possible bankruptcy during an economic downturn that has worsened since the Sept. 11 terrorist attacks in New York and Washington, D.C.
Freightliner manufactures American LaFrance fire engines in the Town of Hamburg.