DETROIT, Mich. — Detroit Diesel Corporation recently announced its intention to build a new, heavy-duty diesel engine line at the company’s Redford, Mich., manufacturing facility.

DDC also stated that it plans to initiate North American assembly of the MBE 900 medium-duty diesel engine at Redford. DDC intends to industrialize production of the two engine platforms at the Redford facility by 2007.

“Detroit Diesel Corporation is very pleased to announce this positive development for our Redford employees and the state of Michigan,” said Carsten Reinhardt, president and CEO for Detroit Diesel Corporation. “The planned addition of the new heavy-duty engine platform and MBE 900 engine assembly speaks to the strength of our manufacturing operations and workforce, and demonstrates the importance of Detroit Diesel to DaimlerChrysler’s North American commercial vehicle strategy.”

The new heavy-duty truck engine – currently in development by DDC and parent company DaimlerChrysler – will be launched in 2007 and will incorporate the latest in diesel engine and emissions technology. For a period of transition, the new engine will be sold in tandem with the popular DDC Series 60 engine.

The announcement of new engine production at Redford follows the ratification of a new labor contract covering 1,300 hourly workers at the facility. Detroit Diesel and the United Auto Workers Local 163 had reached a tentative agreement on Nov. 10. The contract was formally ratified by a vote of the UAW membership on Nov. 21. The new contract is effective immediately and runs until April 30, 2010.