Dive Brief:
- Daimler Truck North America announced plans last month to invest $285 million to expand and upgrade subsidiary Detroit Diesel Corp.’s facility in Redford Township, Michigan.
- “The planned investment aims to modernize and enhance the existing plant to maintain its current production capacity while equipping it to manufacture electric powertrain components for medium- and heavy-duty electric trucks,” Matthew Pfaffenbach, VP of Daimler’s powertrain operations, said in an email to Manufacturing Dive.
- The projected investment will create 436 jobs as well as retain 2,000 employees, according to a press release from the Michigan Economic Development Corp. Construction is expected to begin in early 2025, according to Daimler’s release.
Dive Insight:
Daimler applied for approximately $31 million in state incentives for the Detroit Diesel project, which the MEDC approved on Dec. 10.
The Detroit Diesel facility in Redford Township dates back to 1938 and now spans over 3 million square feet. The facility produces engines, transmissions and axles for the Freightliner, Western Star and Thomas Built Buses vehicle platforms, according to the application.
With the investment, the company plans to add approximately 110,000 square feet to the Diesel Detroit facility, Pfaffenbach said.
Daimler’s Detroit Diesel project includes establishing a research and development facility focused on ZEV battery prototyping and testing, according to the application.
The company added that it may further invest in the Detroit Diesel facility as it establishes a ZEV manufacturing hub within its production network.
The project aims to strengthen Daimler’s position within the ZEV market, which it expects will rapidly grow through the decade’s end.
The truck maker’s latest plans also align with its joint project with utility company DTE Energy, “Truck Stop of the Future,” which helps companies transition their fleets to electric commercial vehicles, Daimler said in the grant application.
“Diversifying the site’s product portfolio is critical to its long-term viability as the commercial truck industry evolves from traditional internal combustion engine (‘ICE’) products to ZEV solutions,” the truck maker said in the MEDC application.
Daimler entered the ZEV market in 2021 by introducing a battery electric product line, including the Detroit ePowertrain for the Freightliner eCascadia and Freightliner eM2. Since then, Daimler has continued to invest in the development and manufacturing of EV batteries and components to adapt to the rapidly evolving automotive market.
In May, Detroit Diesel expanded a facility in Hibbing, Minnesota, focusing on BEV-specific remanufactured parts and high-voltage manufacturing components, such as batteries and inverters.
