Daimler Investing $194 Million in Detroit Diesel Engine Plant

Daimler Trucks North America confirms it will invest $194 million in its Detroit Diesel engine production facility in Redford, Mich. The goal is to expand engine production capacity there “substantially,” to produce EPA 2010-compliant Class 8 heavy-duty trucks. Detroit Diesel’s fuel-efficient diesel engines with BlueTec technology are among the first in the North American industry to comply with new U.S. emissions standards for Class 8 heavy-duty trucks.

Detroit Diesel is a Daimler Trucks North America subsidiary that manufactures on-highway diesel engines for commercial trucks. Reportedly, it chose to expand the Michigan plant over its Mannheim, Germany, plant, or to build a new operation in Mexico.

Much of its investment will cover expanding cylinder head production at Redford, but also to redesign the facilities, improve plant infrastructure, and purchase and install new production machinery and equipment.

The project will begin in July and continue through September 2011.

DTNA said its investment will be supported by state and local incentives, including a $56.8-million job-retention credit from the Michigan Economic Development Corp., and other tax credits and abatements. About 1,900 jobs are expected to be affected.

“We’re very happy with the framework agreement we recently negotiated with the UAW,” stated DTNA president and CEO Martin Daum. “We would also like to thank the State of Michigan, Redford Township, and Wayne County for jointly reaching the decision to provide us with the funding package. Our total investment of approximately $200 million underscores the importance of the Redford plant and our confidence in the workforce of Detroit Diesel. Strong partners are needed if a commitment on this scale is to be successful.”