Daimler Truck is preparing a major expansion of its North American manufacturing footprint. The German truck maker will build a new factory in the United States for vocational and long-haul trucks, with construction due to start late this year and production scheduled for 2029.
The location has not yet been decided, with Daimler Truck North America (DTNA) evaluating several potential sites. Neither investment nor annual capacity has been disclosed, but the company says the greenfield plant will create thousands of jobs.
According to the official release published on Friday, the factory will use flexible assembly systems and advanced production technology, allowing Daimler to build a wide variety of truck configurations and react more quickly to changes in customer demand.
CEO Karin Rådström called the project part of Daimler Truck’s long-term growth plans for North America. The group wants to increase both vocational production, for construction, municipal, and other specialized applications, and on-highway output, the segment dominated by long-haul tractors such as the Freightliner Cascadia.
One of the group’s most profitable regions
North America is crucial to Daimler Truck because it is traditionally one of the group’s most profitable regions. Freightliner is the region’s best-selling heavy truck brand, while Western Star has been gaining ground in the vocational market.
At its 2025 Capital Market Day, Daimler said DTNA had reached a 24% share of the heavy vocational segment and described further expansion in that segment as a key growth opportunity.
The timing is significant. The US truck market was hit hard last year by uncertainty surrounding President Donald Trump’s tariff policy, which made fleet operators reluctant to place orders. Demand has since begun to recover. DTNA sold 41,687 trucks in the second quarter, 8% more than a year earlier, although first-half sales remained 8% lower.
160,000 to 180,000 vehicles
Daimler recently raised its 2026 North American forecast from 150,000-170,000 vehicles to 160,000-180,000. It also sharply upgraded its expected adjusted return on sales for the division after the US Department of Commerce approved its US Content application, reducing the expected tariff burden.
That gives the new factory an additional strategic dimension. Daimler already manufactures large numbers of Freightliner trucks in Mexico, at Saltillo and Santiago Tianguistenco, for customers throughout North America.
Increasing production inside the US reduces exposure to future changes in US-Mexican trade rules and makes it easier to increase the American content of its vehicles.
Stop production in Portland
The announcement also comes only a little over a week after DTNA confirmed that it will stop truck production at its historic Portland, Oregon, plant by the end of this year, affecting around 375 jobs. Production will move to North and South Carolina, while Portland remains DTNA’s headquarters and engineering center.
Daimler already has substantial manufacturing operations in the Carolinas, including heavy-truck production in Cleveland, North Carolina, and medium-duty production in Mount Holly. That makes the southeastern US a logical candidate for the new plant, although the company has given no indication where it will be built.
The US investment fits into a broader reshaping of Daimler Truck’s industrial network. Mercedes-Benz Trucks’ main European plant remains Wörth in Germany, supported by Aksaray in Türkiye and Molsheim in France.
Daimler is also preparing a new plant in Cheb, Czech Republic, while it manufactures trucks in Brazil, Argentina, India, South Africa, and, through partnerships, China.
