Truck plant could expand

Freightliner, a subsidiary of DaimlerChrysler Corp., is considering a major investment at its heavy-duty truck assembly plant in St. Thomas, industry sources said yesterday. Officials won't comment on any plans but sources said Freightliner has been negotiating in recent months with the federal and provincial governments to determine whether an expansion project is economically viable. Freightliner's Sterling Trucks division is trying to tap new federal and provincial government programs designed to spur auto investment here instead of the United States. The company has several other plants in the United States and Mexico. General Motors and Ford are also seeking hundreds of millions of dollars in aid from the two governments in return for assembly plant investments in the province. Freightliner officials would not comment yesterday on whether the company is contemplating a significant investment at the St. Thomas plant, which is currently running at full capacity due to booming demand. "In terms of further expansion, we continue to evaluate the projected market and our production needs," company spokesperson Chris Brandt said. "But we have no specific plans at this point." Portland, Ore.-based Freightliner employs about 1,900 workers at the St. Thomas operation. They produce about 105 trucks daily on one line. The day shift assembles trucks eight hours daily Monday through Friday, an afternoon group works 10 hours a day Monday through Thursday and another unit works 12 hours a day from Friday through Sunday. Earlier this year, Freightliner added the Friday through Sunday shift to keep up with demand. The plant is sometimes six weeks behind dealer orders. "There is also a lot of overtime," said one source familiar with the company's situation. "It's bursting at the seams and they're seriously looking at what can be done." Industry officials noted Freightliner could add a third shift but that might not be enough to meet long-term demand. The market for heavy trucks in North America is cyclical, with extreme ups and downs.