Daimler Sheds 2,300 at Japanese Unit

Daimler AG (DAI) aims to close down 2 plants at its Japanese truck unit Mitsubishi Fuso, resulting in a reduction of 2,300 positions.

Daimler stated that its Mitsubishi Fuso division would shut a bus production plant at Oye near Nagoya in Japan by mid-2010 and also close a truck plant near Bangkok in Thailand by the end of 2009.

The company also indicated that it would restructure its retail network in Japan to adjust capacity to a weakening market.

The above-mentioned jobs cuts at Mitsubishi Fuso would be carried out through voluntary leave, retirement, and other means.

Daimler also said that its overall fixed costs would be reduced by 25% as a result of its latest actions.

Meanwhile, Daimler, a Zacks #4 Rank ("Sell") company, dipped almost 5% today on low volume of 233,000, against the daily average of 829,000.

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