Freightliner LLC Celebrates Sixty Years of Commercial Vehicle History

Stuttgart, Germany / Portland, Oregon, USA, March 2002

Freightliner LLC, the U.S. truck subsidiary of DaimlerChrysler AG, is celebrating its 60th anniversary in 2002. The company is marking the occasion with a large number of events.

Freightliner kicked things off by presenting two historic trucks at the Mid-America Trucking Show in Louisville, Kentucky, from March 21 - 23. The line-up includes a cab-over-engine truck and a conventional-cab truck, both from the year 1942 and fully restored.

"For the past six decades, and during its enormous growth, the tradition-rich company Freightliner has consistently claimed a leading position in the production of commercial vehicles and a readiness to help its customers organize their business activities more efficiently," said Rainer Schmückle, president and CEO of Freightliner LLC. "We look forward to fulfilling and upholding this commitment in the 21st century as well."

Freightliner LLC was established by the haulage contractor Leland James in 1924. For his haulage business, he required light and sturdy trucks with a high carrying capacity. He was not satisfied with the designs and the truck manufacturers that existed, so he took up the project himself and began tests with light-weight aluminum designs so that shippers would be able to transport more freight.

The "Freight-Liner" nameplate, written with a hyphen, was first attached to one of these trucks in 1940 and referred to the combination tractor unit and trailer that the company built at that time. The year 1941 saw the first truck with the "Freightliner" nameplate. In 1942, the company was named Freightliner Corporation. This marked the birth of the company which, with its pioneer character, was to become the largest heavy-truck manufacturer in North America.

Four decades later (1981), Freightliner was taken over by Daimler-Benz AG. In the following years, there was a large increase in production and sales as well as an increase in sales in the export markets. The company produces and markets medium and heavy-duty trucks under three brands: Sterling (since 1998), Western Star (since 2000) and the traditional Freightliner brand.

Freightliner LLC also owns American LaFrance (fire engines and rescue vehicles), Thomas Built Buses (school buses) and the Freightliner Custom Chassis Corporation (chassis for school buses, airport buses and motor homes).

A subsidiary of DaimlerChrysler AG, Freightliner LLC owns production sites in three countries (U.S., Canada, Mexico) and employs 14,000 people in North America alone. Freightliner sets great store by achieving the highest technical quality in vehicle design and production and supports its products with first-class customer service.

On the occasion of the Mid-America Trucking Show in Louisville, Kentucky, Dr. Eckhard Cordes, who is responsible for the Commercial Vehicles Division on the DaimlerChrysler Board of Management, said: "We're right on schedule with the Freightliner restructuring program introduced six months ago. Of the $450 million in cost savings identified for 2002, we have already achieved $400 million. At Freightliner, you sense the intention to set out for new horizons."

In particular, over 5,000 different savings initiatives were identified: from savings in material costs, a cut in production costs and a reduction in personnel expenditures to positive effects resulting from an improvement of the business model.

These include the following, for example:

Savings in electronic purchasing through the use of the electronic purchasing platform Covisint. Initiating a reduction of chassis platforms from six to three in the next two years. New Distribution Vehicle "Business Class M2" Presented

The Freightliner "Business Class M2"

On top of that, Freightliner is counting on new products. The new truck line "Business Class M2" was introduced to customers for the first time at the Mid-America Trucking Show. In the case of distribution trucks in the medium-duty weight segment (Class 6/7), Freightliner attained a market share of 27.3% in the U.S. at the end of 2001 (+2.9% over the previous year). This means that Freightliner, the market leader in heavy-duty trucks, is now also the second strongest supplier in the medium-duty segment.

For the first time, Freightliner is now using assemblies such as engines and transmissions from the DaimlerChrysler parts network as standard equipment in its own vehicles. Dr. Eckhard Cordes comments: "Like the new Mercedes-Benz truck line Axor, the new Freightliner M2 is another example of the consistent exploitation of synergies within the Commercial Vehicles Division. In addition to cost cutting within the framework of our restructuring program announced in October 2001, the new 'Business Class M2' will likewise contribute to a lasting improvement in Freightliner's bottom line."

As standard equipment, the new trucks feature four and six-cylinder in-line engines of the Mannheim-produced 900 series, which have proven themselves in the past in Mercedes-Benz trucks, buses and the Unimog. Alternatively, engines and transmissions from U.S. suppliers are also available for the new Freightliner trucks on request.

The Freightliner Business Class M2 is designed for the wide range of transport duties carried out in the distribution sector, from food deliveries to towing services. The features of the conventional-cab trucks include a completely redesigned aluminum driver's cab. This makes high load capacities and low diesel consumption possible. Production begins in June of this year at the Mt. Holly plant in North Carolina.