Daimler To Keep Oregon Truck Plant

PORTLAND, Ore. (AP) -- Daimler Trucks North America says it will keep its Portland truck plant operating, a decision that comes a year after the company said that the plant would close in 2010.

The company says the decision resulted from a big military contract. Daimler Trucks North America is owned by Germany's Daimler AG and based in Portland.

Company managers previously planned to transfer manufacturing of Western Star commercial vehicles from Portland to Mexico. Those plans are on hold, as is a plan to transfer all Freightliner-branded military-vehicle manufacturing to North Carolina.

Daimler officials say much depends on negotiating a new labor contract they hope will cut costs. They did not say how many workers will be retained or how many trucks will be built.

Joe Kear of the machinists union that represents most of the employees says his union hopes for another three-year contract.

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