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.

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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.



$29.6MQ4 2008BioMerieux (France)PML Microbiologicals (CA)12/8
NDQ4 2008Beecher Carlson (GA)Sage Insurance (Bend)12/15
NDQ4 2008Brown & Brown (FL)Stewart & Tunno Insurance Agency (Portland)12/8
NDQ4 2008Employee Benefit Management Services (MT)Kipp & Company Administrators of Portland (Portland)12/10
NDQ4 2008John L. Scott Real Estate (Portland)Ken Hoffman Realtors (Portland)12/2
$44MFive Star Quality Care (MA)Seven retirement homes (NC, SC)/Sunwest Management (Salem)12/29
$8.5MDeacon Development Group (Portland)96,900 sq. feet/office (Tigard)/Farmers Insurance (CA)12/5
$7.9MYee Hop Realty (HI)69,000 sq. feet (Portland)/Patterson Ranch (CA)12/5
$6MUniversity of Portland (Portland)35 acres on Willamette River (Portland)/Triangle Park (Portland)12/18
$4.4MOakgrove Village (Portland)Patrician Square Apartments (Milwaukie)/D. Kornbum (WY)12/1
$2MPacific Northwest Properties (Beaverton)Bethany Business Park II (Beaverton)/MRD Properties (Lake Oswego)12/29
$1.8MFerdinand Beernink and Judith YoungShari’s Restaurant (The Dalles)/Shari’s Management (Beaverton)12/19
$1.3MFBR Wealth Mng. Group (Portland), Accountax of Oregon (Tigard)Office building (Tigard)/Pfaffle Office (Portland)12/29
$1.2MBoris and Jessica Dimitrov (Vancouver)Broadway City Building (Vancouver)/Broadway City Building (Vancouver)12/4
$817,000Madsense2,600 sq. feet (Beaverton)/Elliot Investments (Beaverton)12/18
$720,000Pat Lawrence3,900 sq. feet (Portland)/Marvin Osman12/5
$500,000WG Development (Eugene)Downtown half-block (Eugene)/City of Eugene12/6
$335,000DeBraTre (Beaverton)2,400 sq. feet (Beaverton)/Stutzman Construction (Portland)12/23
NDMary Gertrude Brandsen Trust (Portland)2,000 sq. feet (Beaverton)/Jerry Lee Condray Trust12/1
NDJeff and Chris Omert12 units at Brookside Apartments (Gladstone)/Charles Padot12/1
$130M (bond sale)Portland General Electric (Portland)/Jim PiroSeries of institutional buyers12/24
$129M (truck order)Daimler Trucks North America (Portland)/Chris PattersonU.S. Army12/9
$125M (line of credit)Portland General Electric (Portland)/Jim PiroWells Fargo (CA)12/10
$50M (stockholder investment)First Independent Bank (Vancouver)/Jeanne FirstenburgPrivate stockholders12/12
$30M (gift)Washington Family Ranch (Antelope)/Young LifeDennis and Phyllis Washington Foundation (MT)12/2
$6M (donation)United Way of the Columbia-Willamette (Portland)/Marc LevyIntel Oregon and Intel Foundation (Hillsboro and CA)12/1
$4M (stock purchase)Capital Pacific Bancorp (Portland)/Mark StevensonU.S. Department of the Treasury12/23
$1M (grant)Oregon Institute of Technology (Klamath Falls)/Chris MaplesKresge Foundation (MI)12/29
$400,000 (engineering building grant)University of Portland (Portland)/William BeauchampCollins Foundation (Portland)12/9
$240,000 (affordable housing award)Bank of the Cascades (Bend) and Bend Habitat for Humanity/Patricia Moss, David LoveSeattle Bank (WA)12/18
$200,000 (grant)Oregon Food Bank (Portland)/Rachel BristolBill & 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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