Daimler’s Japanese venture with Mitsubishi Corp is to close a bus factory in Japan and a truck plant in Thailand resulting in the loss of 2,300 jobs by the end of next year.
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Mitsubishi Fuso Truck and Bus will shut its Oye plant near Nagoya and move bus production to its Toyama site by mid-2010 while the Lardkrabang truck factory near Bangkok will cease operations by the end of this year.
However, the company said it would increase production at its Tramagal plant in Portugal and also boost output of some of its new light duty trucks.
This is the second wave of reorganisation of Daimler’s truck operations. Last October, the company announced the closure of two North American factories and said it would drop its Sterling Trucks brand at a cost of 3,500 jobs in an effort to save US$900m a year by 2011.
Fuso’s truck and bus sales in Japan have fallen 39% so far this year. The company accounts for 40% of Daimler’s worldwide truck sales and employs 15,400 workers. The company said in a statement: “Japan remains MFTBC’s most important market, but the Japanese commercial vehicle market is experiencing a long-term downward trend with growth potential shifting to developing economies.”
Daimler acquired a 43% stake in Fuso in 2003, raising its holding to 85% in 2005. The remaining 15% is owned by owned by the Mitsubishi Corp. trading house and its subsidiaries.
