Detroit Diesel Corporation (DDC) Announces Intention to Build New Heavy-Duty Diesel Engine at Redford, Mich., Facility
November 22 2004 - 3:21PM
PR Newswire (US)
Detroit Diesel Corporation (DDC) Announces Intention to Build New
Heavy-Duty Diesel Engine at Redford, Mich., Facility * Medium-Duty
Engine Assembly Also Slated for Redford * Announcement follows
ratification of new 5-1/2 year labor contract for DDC production
employees DETROIT, Nov. 22 /PRNewswire/ -- Detroit Diesel
Corporation (DDC) today announced its intention to build a new,
heavy-duty diesel engine line at the company's Redford, Mich.,
manufacturing facility. DDC also stated today that it plans to
initiate North American assembly of the MBE 900 medium-duty diesel
engine at Redford. DDC intends to industrialize production of the
two engine platforms at the Redford facility by 2007. "Detroit
Diesel Corporation is very pleased to announce this positive
development for our Redford employees and the state of Michigan,"
said Carsten Reinhardt, President and CEO for Detroit Diesel
Corporation. "The planned addition of the new heavy-duty engine
platform and MBE 900 engine assembly speaks to the strength of our
manufacturing operations and workforce, and demonstrates the
importance of Detroit Diesel to DaimlerChrysler's North American
commercial vehicle strategy." The new heavy-duty truck engine --
currently in development by DDC and parent company DaimlerChrysler
-- will be launched in 2007 and will incorporate the latest in
diesel engine and emissions technology. For a period of transition,
the new engine will be sold in tandem with the popular DDC Series
60 engine. In the NAFTA market, the new engine will be installed in
heavy-duty vehicles produced by the Freightliner Group and in
products built by selected other DDC customers. The MBE 900
medium-duty diesel truck engine has been available since 1998.
Offered in four- and six-cylinder versions, the MBE900 is
extensively used in Freightliner Group vehicles in North America.
The Freightliner Group, headquartered in Portland, Oregon, is the
largest manufacturer of heavy-duty trucks in North America and a
leading manufacturer of medium-duty vehicles. Freightliner produces
and markets Class 3-8 vehicles under the Freightliner, Sterling,
Western Star, American LaFrance and Thomas Built Buses nameplates.
The Freightliner Group and Detroit Diesel are both part of
DaimlerChrysler's Commercial Vehicles Division. The announcement of
new engine production at Redford follows the ratification of a new
labor contract covering 1,300 hourly workers at the facility.
Detroit Diesel and the United Auto Workers Local 163 had reached a
tentative agreement on Wednesday, November 10. The contract was
formally ratified by a vote of the UAW membership on Sunday,
November 21. The new contract is effective immediately and runs
until April 30, 2010. "Detroit Diesel Corporation is very pleased
to have reached a new labor agreement with the UAW for the Redford
plant," Reinhardt said. "We believe this is a fair and equitable
contract that provides our valued employees with a highly
competitive compensation package while allowing for increased
manufacturing flexibility. The agreement signals a spirit of
partnership and gives us tremendous momentum as we make plans to
move forward with new investments at Redford." Detroit Diesel
Corporation, headquartered in Detroit, Michigan, is engaged in the
design, manufacture, sale and service of heavy-duty diesel and
alternative fuel engines, automotive diesel engines and
engine-related products. The company offers a complete line of
engines for the on-highway, off-road and automotive markets and is
a QS-9000 certified company. Detroit Diesel services these markets
directly and through a worldwide network of more than 2,700
authorized distributor and dealer locations. Detroit Diesel is a
subsidiary of DaimlerChrysler AG, the world's leading manufacturer
of heavy- duty diesel truck engines. DATASOURCE: Detroit Diesel
Corporation CONTACT: Chris Brandt of Detroit Diesel Corporation,
+1-503-745-5471, Fax: +1-503-745-5096, E-mail: Web site:
http://www.detroitdiesel.com/ Company News On-Call:
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