Several hundred hourly and salaried workers have been laid off at Peterbilt's Nashville-area plant as the company reduces its build rate from 50 to 35 trucks per day in response to lagging demand for heavy-duty trucks. Adjustments will be made in the company's Denton, Texas, facility as well.

On Friday, about 370 of the plant's 1,150 assembly line employees were laid off as the company stopped its second shift, which was actually half a shift. Yesterday, the cuts extended to salaried managers and other professionals; according to the Associated Press, up to 60 salaried employees will be affected.
In addition, both the Nashville plant and the Denton plant will cease production for four days in August and September, according to Peterbilt spokeswoman Allison Hatfield. At the Nashville plant, which is a union plan, employees are being encouraged to take these days as vacation days. At the Denton plant, where all workers are on salary, the closings will not affect their pay.
Layoffs are also in the works at Peterbilt's Denton headquarters, but exact numbers have not been determined.
Hatfield says the decline in demand is due to high diesel prices, high insurance rates, an excess of used trucks and the driver shortage, which are all hurting new truck sales.