Bloomberg has reported that Daimler AG, one of the world's largest producers of heavy duty vehicles, plans to close its Sterling Trucks division. As a result, 3,500 jobs will be cut, including 2,300 manufacturing jobs and 1,200 administrative positions.

According to a company spokesman, the Sterling division, which makes medium-size trucks, "never met expectations." The division accounted for 15 percent of Daimler's U.S. truck output, Bloomberg reported.

The company will keep the Freightliner and Western Star brands in the region and production will be moved to Mexico, according to the report.