Daimler Trucks North America (DTNA) announced today that it will invest $194 million (approximately €157 million) in the Detroit Diesel engine production facility in Redford, Michigan. The investment will be supported by a variety of state and local incentives.

These incentives include a Michigan Economic Growth Authority Award of $56.8 million (approximately €46 million), which is granted by the Michigan Economic Development Corporation, as well as other state and local tax credits and abatements.

Following a call for bids and a series of public hearings, DTNA was authorized to receive a subsidy for its investment project in Redford. “We’re very happy with the framework agreement we recently negotiated with the UAW,” says Martin Daum, President and CEO of DTNA. “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.”

DTNA’s investment will substantially expand the engine production capacity in Redford. Detroit Diesel’s diesel engines with BlueTec technology are extremely fuel-efficient, and they are taking on a pioneering role within the North American industry when it comes to complying with the U.S. emissions standard EPA 2010. DTNA is the leading supplier of EPA 2010-compliant Class 8 heavy-duty trucks.

A big part of the investment will be spent on cylinder head production. The funds will also be used to redesign the manufacturing facilities, improve plant infrastructure, and purchase machines and equipment. The measures for increasing production capacity at the 28-hectare Redford production plant are scheduled to commence in July 2010 and continue until September 2011.

Detroit Diesel Corporation, which has its headquarters in Redford, Michigan, is a company of Daimler Trucks North America and a leading manufacturer of on-highway diesel engines for the commercial truck market.

Source: Daimler AG