Daimler to cease production of Orion buses

ORISKANY — Daimler Buses said today it will wind down production of its Orion transit buses in the United States and Canada, leaving an uncertain future for its employees in Oriskany.

The company said its Orion facilities in Oriskany and Mississauga, Ontario will stop taking new orders over the next 12 months. The plants will continue work on current orders.

The Mississauga site will close, but a retrofit parts and field service program for current customers will continue in Oriskany, the company said.

The company did not say how many employees would be affected by the changes but did say it will provide a separation benefit to all eligible workers. Daimler did not say how many employees it has in Oriskany.

“Daimler Buses considered all possible options for reconfiguring our transit bus operations in North America, but at the end of the day, Orion is facing a situation where the cost position is not competitive, the local market is in a continued slump, and growth opportunities are not available from selling the product overseas” Daimler Buses Head Hartmut Schick said in a news release.

Stuttgart, Germany–based Daimler sold more than 39,000 buses and coaches worldwide in 2011. While sales remained strong in Latin American, sales in western Europe and North America suffered from public-sector budget constraints, company officials said.

Daimler, owned by European, U.S. and other international investors, reported revenue of $106.5 billion euros in 2011 and employs more than 271,000 people. Daimler has manufacturing facilities in 17 countries producing the Mercedes-Benz, smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra, Orion, and Thomas Built Buses brands.

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