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Deal Watch: Freightliner lands bittersweet military order

Freightliner.jpgSince that chilly autumn day back in October when Daimler Trucks North America announced it would be shuttering its Portland plant come June 2010, little notice has been given to the company outside its inevitable fate.

Since that chilly autumn day back in October when Daimler Trucks North America announced it would be shuttering its Portland plant come June 2010, little notice has been given to the company outside its inevitable fate: the 900 manufacturing jobs gone, including 190 cut Jan. 30; the work shifted to Daimler’s plants in Mexico and North and South Carolina; the more than 75 years of Freightliner production in Portland coming to a halt.

But for the moment, anyway, work rolls on at the Portland plant. Employees are building dump trucks and semis from two of the company’s remaining brands, Freightliner and Western Star, and this past December, DTNA won a sizable contract to build more than 600 heavy-duty tractor-trailers for the U.S. Army.


The contract, worth $129 million, is for 603 M916A3 Light Equipment Transporters. Similar to Daimler’s civilian tractor-trailers, the M916 is used primarily to tow semi-trailers transporting engineering and construction equipment. The trucks can also be outfitted with armor plating for use in combat zones, as many from past orders have been.

In 2007, the company received a $166 million order from the Army for M916s, which capped off a seven-year, $725 million contract. In addition, according to the Department of Defense, Daimler was awarded a $170 million contract last April not only for 600 of the M916s, but for 200 of its dump trucks. That work is to be completed by Halloween of 2009, while the latest order is expected to wrap up about a month earlier.

There’s been no definitive word yet on when the company will stop taking orders for the Portland plant or exactly where the production of the M916 will end up after June 2010, though it is likely to end up at Daimler’s plants in either Santiago, Mexico, or North or South Carolina.



$29.6M Q4 2008 BioMerieux (France) PML Microbiologicals (CA) 12/8
ND Q4 2008 Beecher Carlson (GA) Sage Insurance (Bend) 12/15
ND Q4 2008 Brown & Brown (FL) Stewart & Tunno Insurance Agency (Portland) 12/8
ND Q4 2008 Employee Benefit Management Services (MT) Kipp & Company Administrators of Portland (Portland) 12/10
ND Q4 2008 John L. Scott Real Estate (Portland) Ken Hoffman Realtors (Portland) 12/2

$44M Five Star Quality Care (MA) Seven retirement homes (NC, SC)/Sunwest Management (Salem) 12/29
$8.5M Deacon Development Group (Portland) 96,900 sq. feet/office (Tigard)/Farmers Insurance (CA) 12/5
$7.9M Yee Hop Realty (HI) 69,000 sq. feet (Portland)/Patterson Ranch (CA) 12/5
$6M University of Portland (Portland) 35 acres on Willamette River (Portland)/Triangle Park (Portland) 12/18
$4.4M Oakgrove Village (Portland) Patrician Square Apartments (Milwaukie)/D. Kornbum (WY) 12/1
$2M Pacific Northwest Properties (Beaverton) Bethany Business Park II (Beaverton)/MRD Properties (Lake Oswego) 12/29
$1.8M Ferdinand Beernink and Judith Young Shari’s Restaurant (The Dalles)/Shari’s Management (Beaverton) 12/19
$1.3M FBR Wealth Mng. Group (Portland), Accountax of Oregon (Tigard) Office building (Tigard)/Pfaffle Office (Portland) 12/29
$1.2M Boris and Jessica Dimitrov (Vancouver) Broadway City Building (Vancouver)/Broadway City Building (Vancouver) 12/4
$817,000 Madsense 2,600 sq. feet (Beaverton)/Elliot Investments (Beaverton) 12/18
$720,000 Pat Lawrence 3,900 sq. feet (Portland)/Marvin Osman 12/5
$500,000 WG Development (Eugene) Downtown half-block (Eugene)/City of Eugene 12/6
$335,000 DeBraTre (Beaverton) 2,400 sq. feet (Beaverton)/Stutzman Construction (Portland) 12/23
ND Mary Gertrude Brandsen Trust (Portland) 2,000 sq. feet (Beaverton)/Jerry Lee Condray Trust 12/1
ND Jeff and Chris Omert 12 units at Brookside Apartments (Gladstone)/Charles Padot 12/1

$130M (bond sale) Portland General Electric (Portland)/Jim Piro Series of institutional buyers 12/24
$129M (truck order) Daimler Trucks North America (Portland)/Chris Patterson U.S. Army 12/9
$125M (line of credit) Portland General Electric (Portland)/Jim Piro Wells Fargo (CA) 12/10
$50M (stockholder investment) First Independent Bank (Vancouver)/Jeanne Firstenburg Private stockholders 12/12
$30M (gift) Washington Family Ranch (Antelope)/Young Life Dennis and Phyllis Washington Foundation (MT) 12/2
$6M (donation) United Way of the Columbia-Willamette (Portland)/Marc Levy Intel Oregon and Intel Foundation (Hillsboro and CA) 12/1
$4M (stock purchase) Capital Pacific Bancorp (Portland)/Mark Stevenson U.S. Department of the Treasury 12/23
$1M (grant) Oregon Institute of Technology (Klamath Falls)/Chris Maples Kresge Foundation (MI) 12/29
$400,000 (engineering building grant) University of Portland (Portland)/William Beauchamp Collins Foundation (Portland) 12/9
$240,000 (affordable housing award) Bank of the Cascades (Bend) and Bend Habitat for Humanity/Patricia Moss, David Love Seattle Bank (WA) 12/18
$200,000 (grant) Oregon Food Bank (Portland)/Rachel Bristol Bill & Melinda Gates Foundation (WA) 12/11
$200,000 (four grants) Insignia Health (Portland); Dune Sciences (Eugene); Floragenex (Eugene); MitoSciences (Eugene) University Venture Development Fund (Salem) 12/19

List researched by Jon Bell

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Last modified onMonday, 19 October 2015 11:40

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