Freightliner To Halt Cab Line In Utah

Posted on August 15, 2006

Freightliner LLC announced that it is closing its Reconfigured Day Cab manufacturing operation in Tooele, Utah. Shutdown of manufacturing operations will occur on a phased basis through October and early November. The Reconfigured Day Cab product was marketed by Freightliner Market Development Corporation (FMDC), the Freightliner LLC division responsible for used truck remarketing and the SelecTrucks brand. Just as Tooele opened in response to depressed used truck market conditions, Freightliner LLC described the manufacturing operation's closure as a strategic move to address the changing dynamics of the market.

"Our success has been built upon anticipating, understanding, and responding to the specific needs of our customers and the market," said Rich Ferguson, President of FMDC. "While closing a manufacturing unit normally signifies hardship, our decision to end reconfiguration operations at Tooele is largely the result of Freightliner's improved resale values and general market demand for Freightliner sleeper cab products."

The first of its kind, the Tooele Reconfigured Day Cab operation was initiated in 2000 amidst a market shortage of quality used day cabs and depressed sleeper cab values. The 80,000 sq. ft. facility was dedicated to refurbishing and reconfiguring used heavy-duty vehicles. The refurbished truck product was intended to be a highly customizable and economical alternative for fleets and owner-operators alike.

Now, after several years, FMDC leaders are discontinuing the reconfiguration operation due to strengthened used truck values, an increased demand for used sleeper cabs, and a more balanced availability of as-built day cabs. "The used truck industry has changed since we started the Reconfigured Day Cab manufacturing operation, and our customers now indicate a stronger need for long-haul trucks," said Ferguson. "We intend to channel our supply of used sleeper cabs directly to the market, as opposed to reconfiguring them. In addition, we will continue to support our loyal Reconfigured Day Cab customers by maintaining diverse inventory of quality used as-built day cabs."