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DHL to Halt Express Deliveries in the U.S

Deutsche Post’s U.S. division will also close its 18 main distribution hubs and lay off most of its workers in the country


Package delivery company DHL may have conquered the world, but it admitted on Nov. 10 that it couldn’t conquer the U.S. The unit of Germany’s Deutsche Post (DPWGN.DE) announced it will stop making express deliveries within the U.S., close all of its 18 main distribution hubs there, and lay off all but a few thousand of its remaining 13,000 U.S. workers.

Although DHL will continue to make deliveries to and from the U.S. and other countries, its withdrawal from the domestic express business is another setback for a blue chip German company in the world’s biggest market. Last year carmaker Daimler (DAI) sold its stake in Chrysler after it was unable to turn around the No. 3 American automaker.

DHL has lost nearly $10 billion in the U.S. in the five years since it purchased Airborne Express in an attempt to challenge FedEx (FDX) and United Parcel Service (UPS). Despite its dominance in the rest of the world, DHL was never able to take enough share from the two major carriers in their home market. The company’s decision to largely withdraw from the U.S. will push parent Deutsche Post to an estimated $1 billion loss for the full year as it books writedowns totaling $3.9 million to cover severance payments to workers and other restructuring.   More from BusinessWeek


November 10, 2008 - Posted by | economy, trucking | , , , , ,

1 Comment »

  1. Fed_Ex and UPS will absorb ALL the DHL business so fast that we’ll never realize they are gone..

    Soon FedEx and UPS WILL merge, can we call em FedUp??

    Comment by TexasFred | November 10, 2008 | Reply

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