Detroit Diesel, Freightliner to invest $275 million in upgrading facility
Mar 1, 2005 12:00 PM
Detroit Diesel Corp (DDC) and Freightliner LLC have announced plans for a $275 million investment in a manufacturing and office facility in Redford MI. The 3.2-million-square-foot Redford facility will become home to a new heavy-duty truck engine line, medium-duty engine assembly, and expanded axle assembly. In addition, the Redford campus of buildings will house the new headquarters of Sterling Truck Corp and Western Star Trucks, two business units of Freightliner LLC.
DDC and Freightliner LLC are both part of DaimlerChrysler's Commercial Vehicles Division.
Built in 1938 and expanded several times in phases, the Redford facility is already home to DDC's headquarters and manufacturing operations, including the DDC Series 60 EGR engine manufacturing line. Since 2001, Redford has also been the home of Axle Alliance Co (AAC). A part of the Freightliner group, AAC builds front and rear axles for heavy- and medium-duty commercial vehicles. All of these operations combined employ about 2,800 people at the facility.
By 2007, the Redford facility will accommodate the manufacturing of a new heavy-duty truck engine. Currently in development by DDC and DaimlerChrysler, the engine will incorporate the latest in diesel engine and emissions technology. For an extended transition period, the new engine will be sold in tandem with the Series 60 engine. In the NAFTA market, the new engine will be installed in heavy-duty vehicles produced by business units of Freightliner LLC.
The Redford facility also will house assembly operations for the MBE 900 medium-duty diesel truck engine. Available since 1999 in North America, the MBE 900 is currently built in Mannheim, Germany. Beginning in 2007, North American versions of the engine will be assembled at Redford.
In the Redford facility upgrade, AAC will expand into gear set manufacturing, along with its current axle assembly operations. Over the next year, AAC will increase its Redford operation by 85,000 square feet to implement a state-of-the-art gear set manufacturing facility.
Construction has already begun to accommodate these new operations.
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