The company popularized the use of cabover (COE) semitractors, with the Freightliner Argosy later becoming the final example of the type sold in North America.

Developed in a CF maintenance facility, Freightways Manufacturing used Fageol vehicles as a starting point for the design, placing the cab above the front axle.

In addition to their shorter length, the trucks underwent weight reduction using aluminum instead of steel to maximize use of engine power (needed to climb mountain grades in the western United States).

In 1942, Leland James renamed Freightways Manufacturing as Freightliner Corporation; as part of the launch, the company debuts the first truck with an all-aluminum cab.

[2] In 1949, Freightliner sold its first vehicle outside of CF (to Portland-based forklift manufacturer Hyster); the vehicle is preserved in the Smithsonian collection in Washington, D.C.[5][6] As it largely existed as a subsidiary of a trucking company, Freightliner sought to establish a distribution network for its product line, allowing for higher production volumes and reduced costs.

[8] The first-generation "shovelnose" cab was retired for 1954 in favor of the taller, flatter "WFT" design; as an option, a "Mountaineer" 4x4 system was offered.

[8] To reduce import tariffs imposed by Canada (later removed by Auto Pact), Freightliner opened its first Canadian manufacturing facility in 1961, in Burnaby, British Columbia.

High COEs accounted for well over 50% of the US market in those days, owing to overall length regulations that limited the bumper-to-taillight dimension of a semitrailer unit to 55 ft on interstate highways.

Deregulation changed the economics of trucking and removed the system of regulated carriage that protected carriers, instead allowing more competition.

Three years later, the Surface Transportation Assistance Act of 1982 relaxed weight and length standards and imposed a new excise tax on heavy trucks and the tires they use.

In 1989, Freightliner acquired a standing plant in Cleveland, North Carolina, near Statesville, that had been producing transit buses for German manufacturer MAN.

Another pronounced downturn in the industry's fortunes necessitated drastic measures to restore Freightliner to financial health, and Dieter Zetsche, now the chairman of Daimler-Benz's Board of Management, was dispatched to lead the project as CEO.

The first clean-sheet COE design from Freightliner since the Daimler acquisition, the Argosy largely eliminated the engine intrusion into the cab, sharing many body components and electronics with the Century Class conventional.

[13] The 1990s were a busy era for truck manufacturers in general, and for Freightliner in particular, under the leadership of flamboyant James L. Hebe, a former Kenworth sales executive who joined the company in 1989.

During the decade, Freightliner made numerous acquisitions to further diversify itself: 1995 – Oshkosh Custom Chassis in Gaffney, South Carolina, became Freightliner Custom Chassis, producing the underpinnings for walk-in vans used by companies such as UPS to deliver parcels and Cintas for uniform laundry services; diesel recreational vehicles; conventional school buses; and shuttle buses.

1997 – As a result of the Ford heavy-truck acquisition, Freightliner created Sterling Trucks (using a long-dormant nameplate once owned by White Motor Company).

1998 – Freightliner acquires bus manufacturer Thomas Built Buses, based in High Point, North Carolina.

By 2002, the Kelowna Western Star plant was closed (shifting to Portland), along with a Thomas facility in Woodstock, Ontario (consolidating entirely to High Point).

Styled similar to the FLD132 Classic XL, the Coronado shared its cab structure and technology with the Century Class and Columbia, marketed towards owner-operators.

[17][18] While remaining the fifth-largest manufacturer in the emergency vehicle segment, American LaFrance was sold in 2005 to private equity fund, with DaimlerChrysler retaining ownership of the Ladson factory.

For 2006, the Sprinter van underwent a redesign (for the first time); final assembly shifts to the former American LaFrance facility in Ladson, South Carolina.

The first company to produce a fully tilting cab, Freightliner was the final truck manufacturer in North America to offer a Class 8 cabover.

[21] In March 2009, DTNA discontinued Sterling Trucks,[15] citing substantial model overlap with Freightliner and decreasing market share (in spite of multiple product launches).

Intended for use by a single driver, the passenger seat was replaced by a jumpseat (converting into a sleeper bed); to optimize trailer hookups, the design included a rear access door.

[27] As a result of increased demand for the Cascadia, parent company DTNA announced plans in 2012 to expand its workforce at its Cleveland, NC, facility.

[28] Alongside the Cascadia, nearly 20% of trucks produced by the plant (including the Argosy and Century Class) were exported to South Africa, Australia and New Zealand.

[29] On August 22, 2014, the Cleveland plant built the 3 millionth vehicle of Daimler Truck North America, a 2015 Cascadia Evolution.

[34] In September 2019, parent company Daimler announced that it would be halting "its internal combustion engine development initiatives as part of its efforts to embrace electric vehicles.