Daimler trucks won't cut German production hours

The head of Daimler AG's truck business said it does not plan to cut working hours at its German plants in the immediate future, despite the economic downturn, but would not rule out further savings in the United States.

Andreas Renschler told The Associated Press on Monday that the truck business isn't reducing its work week now for employees "and the way things look now, it won't come in the first half of 2009."

The company is planning to cut back most of its part-time help by the end of this year, but has given no figures.

Daimler's car division has said it will lengthen its Christmas holiday production stoppage this year and is considering cutting the work week from 35 hours to 30.

Renschler acknowledged that the company - whose truck brands include Mercedes-Benz, Freightliner, Western Star and Fuso - faces weak demand in the coming months.

"We're looking at a first half of next year that looks less attractive," Renschler said, noting that the U.S. market in particular remains difficult. "It will take a lot longer there before a recovery comes."

In October, Daimler said truck manufacturing at its St. Thomas, Ontario, plant will end in March 2009, when its current agreement with the Canadian Auto Workers at the facility expires.

The company also plans to close its Portland, Oregon, truck plant in June 2010, when labor contracts there expire. The closures should eliminate about 3,500 jobs.

Renschler would not rule out further savings in the U.S."We plan in scenarios and are prepared for all eventualities," he said, without elaborating.

Renschler said the problems in the U.S. truck market lie in part in the current consolidation of the logistics sector there. Many smaller fleets gave up their business this summer, especially after oil prices reached record highs in July - meaning that there are a lot of trucks on the market at the moment.

Despite that, "we're well positioned in the USA," Renschler said. He noted that the company plans to open another production facility in Mexico next year.

Renschler declined to give an outlook for the worldwide truck market in 2009, but said Daimler still expects to see record revenues for the truck business in 2008. The company hopes for growth in developing markets such as China, India, Brazil and Russia.Daimler is due to decide by the end of this year whether to enter a partnership with the Russian truck maker Kamaz.

Renschler stressed that Daimler does not plan any cutbacks in the company's research and development activities.Daimler's truck division, which employs some 80,000 worldwide, posted revenue of euro28.5 billion in 2007, with 467,667 trucks sold.Shares of Daimler closed up 1.9 percent to euro24.18 ($31.43) in Frankfurt.

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