Daimler to Expand Diesel Plant Near Detroit

Daimler AG is spending $375 million (€352 million) to add medium-duty diesel engine capacity at its Detroit Diesel Corp. manufacturing complex near Detroit.

The new expansion at the Redford, Mich., facility will enable the factory to begin making DD5 and DD8 diesels for the NAFTA market in 2018. The engines currently are supplied from Daimler’s plant in Mannheim, Germany.

The investment follows $100 million Daimler spent at the complex to launch production today of Daimler’s popular D12 automated manual transmission for heavy-duty trucks. Those gearboxes previously were imported from Gaggenau/Baden, Germany.

Both expansion projects support Daimler’s philosophy of offering truckers complete powertrain packages. Truckmakers traditionally have assembled powertrains using engines and transmissions selected by their customers from outside suppliers. Daimler says its integrated systems cost less and are about 3% more fuel efficient.

The company estimates its Freightliner and Western Star heavy trucks account for 40% of the North American market for Class 6-8 heavy trucks.