DTNA Prepares for the Future With Plans for a New U.S. Truck Manufacturing Plant

Daimler Truck North America (DTNA) is preparing for the next generation of truck production by moving forward with plans to build what is expected to become its largest truck assembly facility in the United States. At the same time, the company is beginning the transition away from its historic Portland manufacturing plant, marking a significant shift in its North American production strategy.

The upcoming factory is designed to support long-term growth, strengthen manufacturing capabilities, and introduce the latest advanced production technologies that will help the company respond more efficiently to changing customer needs and market conditions.

Although the final location has not yet been announced, DTNA expects the facility to begin production in 2029, with construction anticipated to start during the latter part of 2026.

Company officials say several locations across the United States remain under consideration. The selection process is focused on key factors including availability of a skilled workforce, supply chain connectivity, transportation infrastructure, operational efficiency, and a favorable business environment.

Once completed, the plant will manufacture both on-highway Freightliner trucks and vocational commercial vehicles, expanding production capacity while giving DTNA greater flexibility to adapt to fluctuations in freight demand and customer orders.

Built Around Next-Generation Manufacturing Technology

Unlike several of DTNA's existing manufacturing facilities that have served the industry for decades, the new plant will be built from the ground up using state-of-the-art digital manufacturing systems and highly flexible production lines.

The investment reflects the broader transformation taking place across the commercial vehicle industry, where manufacturers are increasingly relying on automation, smart factory technology, robotics, real-time production monitoring, and digital quality control to improve efficiency while maintaining consistently high manufacturing standards.

According to DTNA President and CEO John O'Leary, the trucking industry continues to evolve rapidly, making continuous investment in manufacturing capabilities essential.

He emphasized that the company is developing a production network that is more resilient, more adaptable, and better positioned to support customers as fleet requirements continue to change. The new facility is expected to simplify the production of multiple truck configurations while improving productivity, quality, and overall manufacturing flexibility.

The announcement follows DTNA's recent decision to permanently close its Portland Truck Manufacturing facility at the end of October, a move that will affect nearly 400 employees.

The Portland plant has played an important role in American truck manufacturing history.

Originally opened by Freightliner in 1947, the facility has produced commercial trucks for generations and has long been considered one of the company's most recognizable manufacturing locations.

This is not the first time the future of the Portland plant has been uncertain. Plans to shut down the facility were previously announced in 2010, but a significant military vehicle contract ultimately kept the plant operating for another decade and a half.

Although truck assembly operations will come to an end, DTNA will continue to maintain its corporate headquarters, engineering teams, and its recently expanded vehicle testing center in Portland, preserving the region's role in the company's engineering and product development activities.

Truck Market Recovery Supports Major Investment

The decision to move ahead with a major manufacturing expansion represents a notable change from the cautious outlook company executives expressed earlier this year.

During DTNA's first-quarter earnings report, executives described one of the weakest commercial truck markets in recent years. Truck sales declined by 26% compared to the previous year, marking the company's slowest first-quarter performance since 2010 as freight demand softened and many fleets delayed equipment purchases.

The uncertain business environment also led Daimler Truck to postpone expansion plans related to Amplify Cell Technologies, its battery cell manufacturing joint venture with Paccar and Accelera by Cummins, reflecting broader caution surrounding investments in electric commercial vehicle production.

Since then, however, market conditions have improved considerably.

Fleet purchasing activity has accelerated as freight volumes stabilized and equipment replacement cycles resumed. DTNA reports that demand has strengthened significantly, with its 2026 production schedule already approximately 95% committed, indicating renewed confidence among carriers investing in new equipment.

Industry analysts also point to an aging North American truck fleet, improving freight fundamentals, and continued demand for fuel-efficient, technology-equipped Class 8 trucks as key factors supporting higher order volumes despite ongoing economic uncertainty.

Today, DTNA operates major manufacturing facilities in North Carolina and South Carolina, while continuing to oversee engineering, research, testing, and corporate operations from Portland.

The company says the location of its new assembly plant will be announced after the site evaluation process is complete, marking another major milestone in the evolution of one of North America's leading commercial truck manufacturers.