DaimlerChrysler Unit to Fire 1,120 Employees

DaimlerChrysler’s Freightliner truck unit will fire 1,120 employees, or 7.1% of its work force, at plants in North Carolina, Mexico and Canada, one month after a new chief executive was installed to restore profit as sales decline.

The firings will result in a 28% drop in Freightliner’s daily production.

Rival North American truck makers also have cut jobs and production because of slowing demand caused by higher fuel costs, a slower U.S. economy and a glut of used trucks in good condition.

DaimlerChrysler’s U.S. shares fell 6 cents to $44.70 on the NYSE.