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Area Development - Site Selection, Facility Planning and Workforce Development

Daimler AG To Invest More Than $120 Million To Expand Its Detroit Diesel Facility In Redford, Michigan

12/11/2012
German-based automaker, Daimler AG, plans to invest $120 million to expand its 3-million square foot Detroit Diesel production facility, part of its North American Truck Division in Redford, Michigan, and create 115 jobs.

Gov. Rick Snyder praised Detroit Diesel Corp for establishing new production lines for heavy-duty truck powertrains and turbochargers at the company's Redford manufacturing headquarters, and hailed its investment in Michigan.

"We can all applaud Daimler for its significant investments in Detroit Diesel operations and thank this world-class company for choosing Michigan for this expansion," Snyder said. "Daimler's commitment demonstrates Michigan's singular leadership as a center of engineering, research, design and technical innovation with a business climate that enables their success."

The Governor said Detroit Diesel will invest approximately $120 million to bring the two new products to its existing heavy-duty engine and axle production portfolio. Detroit Diesel will be the industry's first commercial vehicle components facility that produces the complete integrated powertrain family. Michigan was chosen for the powertrain production over an existing Daimler facility in Germany and Mexico. Turbocharger production will be moved from China to Michigan.

The investment will create 115 job and retain about 82 jobs, bringing the overall employment at the Detroit Diesel facility to more than 2,500, according to the Governor’s Office.

"Gov. Snyder's meeting with Daimler executives in Germany underscored the strong relationship between Michigan and the company and demonstrated that Michigan is more business-friendly than ever," said Michael A. Finney, Michigan Economic Development Corp. president and CEO. "The expansion of the Detroit Diesel facility will further strengthen Daimler's Michigan presence and provide additional high paying jobs for years to come."

Daimler has invested more than $600 million in the Detroit Diesel plant, and has made the Redford plant one of the leading Daimler truck engine plants in the world. In addition to incentives provided by the state, members of UAW Local 163 agreed to production changes to enable Daimler’s Detroit DT12 automated manual transmission and its Detroit DD15 asymmetric turbocharger to be produced at the Michigan plant.

The Daimler statement also says that “Daimler Trucks North America will become the first heavy-duty vehicle manufacturer in North America to offer a fully integrated powertrain from one production facility.”

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