Daimler AG announced that the Sterling line of heavy-duty trucks will be phased out over the next 18 months, two plants will be closed and 3,500 salaried and hourly jobs will be lost. Freightliner and Western Star trucks will continued to be offered, although production of some models is expected to shift to Mexico.

Sterling dealers are expected to stop taking new truck orders in January, but will continue to offer parts, technical support and warranty repairs. The Sterling plant in St. Thomas, Canada, will close in March 2009, and the plant in Portland, Ore., will close in June 2010. Daimler Trucks North America headquarters will remain in Portland, but many positions have been moved to Fort Mill, S.C.

Daimler indicated the move is in response to several market factors, including a slumping economy, higher fuel prices, the cost of meeting tighter engine exhaust emission standards and overcapacity in the truck industry.

For more information, see your Sterling dealer.