Daimler Sets Month-Long German Production Halt

Daimler AG will close its 14 plants in its home country of Germany for a month starting in December as it slows production because of falling demand for cars and trucks, Bloomberg reported Monday.

The closure will run from Dec. 12 to Jan. 12 and will affect about 150,000 workers, who will be kept on full pay, a company spokesman told Bloomberg.

Daimler cut its full-year earnings forecast last week even as it posted a higher third-quarter profit than a year ago. The Stuttgart, Germany-based company is under pressure as the global financial crisis and economic slowdown hurt demand for its upscale cars, Bloomberg reported.

Daimler is the parent company of Daimler Trucks North America, which makes Freightliner, Sterling and Western Star truck brands. It said earlier this month it would discontinue the Sterling brand by March of next year.