Detroit Diesel Corporation Announces $194 Million Investment in Engine Manufacturing Plant

Company and Government Officials Applaud Public/Private Partnership

REDFORD TOWNSHIP, MI. - June 18, 2010 - Detroit Diesel Corporation (DDC) announced that it will invest approximately $194 million to expand existing operations at its manufacturing facility in Redford Township, Michigan. The announcement was made earlier today in an all-employee town hall meeting at the 3-million square foot Redford Township site with key Federal, State and local officials in attendance. The DDC facility employs 1,900 people and manufactures heavy-duty diesel engines for the commercial truck market. Company officials also confirmed today that its Redford Township investment will be supported by a variety of state and local incentives, as announced by Michigan Governor Jennifer Granholm and Redford Township Supervisor Tracey Schultz Kobylarz earlier this week. These incentives include a Michigan Economic Growth Authority (MEGA) award of $56.8 million as well as other state and local tax credits and abatements.

The company's investment will provide expanded and benchmark manufacturing capacity for heavy-duty diesel engines featuring Daimler's proprietary BlueTec® selective catalytic reduction technology, designed to meet EPA 2010 emission standards. This new family of engines represents the state-of-the-art in technology for fuel efficiency and emissions reduction.

A major portion of the capital spending will support the machining line for the cylinder heads of these new engines. The investment will also cover facility renovations, infrastructure improvements, and procurement of machinery and equipment, as well as ongoing routine and incidental capital investment associated with the production of engines at DDC.

"Detroit Diesel’s decision to invest in its Redford Township facility demonstrates that we are globally competitive,” said Governor Granholm. “Our world-class skilled workforce, strong public-private partnership and manufacturing support systems make this a wise choice. This investment further solidifies Michigan’s reputation as the ‘place to be’ for domestic and international car and truck companies such as Daimler.”

"An investment on this scale only works with the commitment of strong and dedicated partners," said Henning Oeltjenbruns, vice president and plant manager, Detroit Diesel Corporation. "We welcome the recent UAW commitment to a new master agreement. We applaud the State of Michigan, Redford Township and Wayne County for their shared commitment to a generous incentive package. We are pleased to announce that Daimler will make its own commitment by investing $194 million. There is no better way to show our appreciation for this support, and our trust in the people of Detroit Diesel."

Expansion-related construction at the site is expected to begin in July 2010 with completion projected for September 2011. The Redford manufacturing facility is located in Redford Township, Michigan.

Detroit Diesel Corporation is a leading manufacturer of on-highway heavy-duty diesel engines for the commercial truck market. Headquartered in Redford, Mich., Detroit Diesel is engaged in the design, manufacture, sale and service of these products, in addition to supporting alternative and hybrid engine strategies for the commercial truck marketplace. Detroit Diesel is a Daimler company, the world's leading commercial vehicle manufacturer.

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