Detroit Diesel Corporation, a Daimler Truck North America subsidiary, announced plans to expand its manufacturing footprint in Redford Township, Michigan, yesterday. The $285 million project will expand and diversify internal combustion engine (ICE) and zero-emission vehicle (ZEV) components production for medium- and heavy-duty trucks, creating up to 436 new jobs and retaining some 2,000. Detroit Diesel makes diesel and electric powertrains, safety systems, and connected vehicle services for Freightliner and Western Star commercial trucks.
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The investment will be supported by a $27.7 million performance-based Critical Industry Program grant from the Michigan Economic Development Corporation (MEDC). Detroit Diesel will also receive a State Essential Services Assessment (SESA) abatement worth up to $3.29 million from the MEDC’s Michigan Strategic Fund.
According to the MEDC, the performance-based incentives will ensure further stability for Michigan-based employees. The company has been a longstanding partner of the UAW in providing competitive wages and comprehensive benefits. The plant has been in the community for more than 85 years.
As ZEV development matures, the MEDC hopes the investment will help diversify the state’s supply chain beyond light vehicles to meet growing demand for cleaner, more fuel-efficient engines and components.
Commercial trucks face unique challenges in transitioning to more efficient technologies, including infrastructure, performance, reliability, cargo type, distance and terrain traveled.
Matt Pfaffenbach, VP of Powertrain Operations at Detroit Diesel, says the expansion is about more than innovation. “[The investment is] about creating job opportunities and upskilling our workforce to meet the demands of tomorrow’s technology while helping to stabilize the heavy-duty supply chain,” he said. “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.”
Governor Gretchen Whitmer applauded the project. In a statement, Whitmer says Michigan “must continue competing to win projects that create in-demand, high-skill jobs.” She hopes to continue using and expanding the state’s bipartisan economic development toolkit to “ensure that everyone can ‘make it’ in Michigan.”
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