Daimler Truck North America Announces Plans for Major Investment in Detroit Manufacturing Plant in Partnership with Michigan Economic Development Corporation
REDFORD TOWNSHIP, Mich. (Dec. 10, 2024) — Daimler Truck North America LLC (DTNA) today announced its intent to make significant investments in its Detroit Manufacturing Plant located in Redford Township, approximately 15 miles west of downtown Detroit. The plant is part of Detroit Diesel Corporation, a DTNA subsidiary. This investment is made in partnership with the local community, Michigan Legislature, and the Michigan Economic Development Corporation (MEDC) as part of state’s Critical Industry Program, which provides financial support to create capital investments in Michigan.
The company’s plans include:
Reinvestment in the Internal Combustion Engine (ICE) Platform: Continuing to support existing technologies.
Enhancement of Research and Development (R&D) Facilities: Promoting innovation and technological advancements.
This strategic investment aims to modernize and enhance the existing plant to maintain its current production capacity and innovation of ICE components, which remain crucial for many commercial trucking applications, and supports the growing demand for cleaner, more fuel-efficient engines and components, fostering an environment for expanded research and development in the commercial trucking sector.
DTNA anticipates a capital investment of up to $285 million for the project, which will be located on the Detroit Manufacturing Campus in Redford Township, Wayne County. In addition to the over 2,000 existing jobs at the facility, more than 400 new jobs are expected to be created at the site, strengthening its role and workforce in Michigan’s automotive future. The plant has a longstanding partnership with the United Auto Workers, maintaining Michigan as a core hub of DTNA’s operations and supporting a stable and skilled workforce in the area.
Matt Pfaffenbach, vice president of powertrain operations, said: “Our Detroit Manufacturing Plant, with its legacy of over 85 years in Michigan, stands as a testament to innovation and progress. This expansion is about more than just innovation; it’s 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. 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. It would not be possible without the support of the MEDC, and we are proud to support both our community and our employees through this initiative.”
The MEDC has incentivized the project with a $27.7 million performance-based Critical Industries Program grant, supporting job creation and economic growth in Michigan. 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.
“My thanks and congratulations to Detroit Diesel Corporation for their commitment to Michigan’s hardworking mobility industry workers employed at its Redford Township facility,” said Quentin Messer, Jr., CEO of the Michigan Economic Development Corporation and chair of the Michigan Strategic Fund Board. “Michigan’s workforce, supply chain, and R&D strength in the mobility are the best in North America, and earning this project further cements that leadership. Detroit Diesel Corporation and companies like it embody the ‘Make It In Michigan’ economic development strategy focused on People, Places, and Projects, and we look forward to the innovations and advancements to come.”
Since 1938, the Detroit Manufacturing Plant has been a cornerstone of DTNA’s operations, being a vast powerhouse that produces engines, transmissions and axles for the Freightliner, Western Star and Thomas Built Buses vehicle platforms. This project further solidifies DTNA’s role as a responsible corporate citizen deeply embedded in its community.
Daimler Truck North America LLC, headquartered in Portland, Oregon, is a leading provider of comprehensive products, services and technologies for the commercial transportation industry. Daimler Truck North America designs, engineers, manufactures and markets medium- and heavy-duty trucks, school buses, vehicle chassis and their associated technologies and components under the Freightliner, Western Star, Thomas Built Buses, Freightliner Custom Chassis Corp and Detroit brands. Daimler Truck North America is a subsidiary of Daimler Truck Holding AG (DTG), one of the world’s leading commercial vehicle manufacturers.
