Even as the OEM pivots to more battery-electric platforms such as the Freightliner eCascadia, Class 8 market leader Daimler Truck North America (DTNA) has not given up on diesel. The company announced plans to invest up to $285 million in its Detroit Manufacturing Plant, which has made well over a million Detroit brand heavy-duty engines such as the DD15. The funds will be used to reinvest in the existing internal combustion engine (ICE) platform and support existing technologies, while also enhancing the research & development facilities to develop new innovations, the company said.
The goal is to maintain current production capacity and innovation of ICE components while supporting the growing demand for cleaner, more fuel-efficient engines and components, the company added in a release. To meet the EPA's MY2027 low-NOx rules, DTNA already planned on making some hardware modifications.
This investment, though, appears to have higher aspirations than meeting short-term emissions goals, serving as a recommitment to the Motor City and the combustion technology that built it.
"This transformative project will propel us into a new era of manufacturing excellence while strengthening our role in the industry and bringing significant growth to the community we call home," stated Matt Pfaffenbach, VP of powertrain operations for Detroit.
Located in Redford Township, the facility, which opened in 1938 to make diesel engines for General Motors, is about 15 miles west of downtown Detroit. The plant has made Detroit Diesel engines there since 1987. It's been critical to Daimler's operations since 2000, producing engines, transmissions, and axles for the Freightliner, Western Star, and Thomas Built Buses vehicle platforms.
The facility already provides 2,000 jobs, and the investment is expected to create more than 400 new jobs at the site. The plant's longstanding partnership with the United Auto Workers maintains Michigan as a core hub of DTNA’s operations.
This investment is made in partnership with the local community, Michigan Legislature, and the Michigan Economic Development Corporation (MEDC) as part of the state’s Critical Industry Program, which provides financial support to create capital investments in Michigan.
The MEDC has incentivized the project with a $27.7 million performance-based Critical Industries Program grant in order to promote job creation and economic growth within the state. DTNA also received Michigan Strategic Fund support for a State Essential Services Assessment abatement with an estimated value of up to $3.29 million.
Construction is expected to begin in early 2025, contingent on the completion of planning and approval processes.
