REDFORD, Mich. — Detroit Diesel Corporation (DDC) and Freightliner LLCannounced plans for a $275 million investment in a manufacturing and office facility here.

Under the companies’ plans, 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 Corporation and Western Star Trucks, two business units of Freightliner LLC.

DDC and Freightliner LLC announced these details of the major upgrade at a ceremony attended by U.S. Senator Carl Levin, MichiganGovernor Jennifer Granholm, U.S. Representative Thaddeus McCotter, other government dignitaries, company and UAW officials, employees and guests.

Detroit Diesel Corporation and Freightliner LLC are both part of DaimlerChrysler’s Commercial Vehicles Division.

“I would like to offer my congratulations to all those involved, whose hard work and perseverance made this major investment in the Redford facility possible," said Andreas Renschler, member of the DaimlerChrysler Board of Management and head of the Commercial Vehicles Division.

Speaking at the event were Rainer Schmueckle, president and chief executive officer of Freightliner LLC, and Carsten Reinhardt, DDC president and CEO.

“The bold new plans for the Redford facility signify the shared commitment of Detroit Diesel Corporation and the Freightliner group to continuing leadership in all aspects of North American commercial truck manufacturing – including vehicles, components, technology and people. The new versatility of the Redford facility will further extend our ability to serve our customers in North America. We are assembling significant future capability to design and manufacture a variety of key components for North American commercial vehicles here at Redford," said Schmueckle.

Schmueckle and Reinhardt said that the new plans for Redford represented a significant commitment to the region. In exploring plans and ultimately deciding on an investment at Redford, the companies’ worked closely with the state of Michigan, as well as the Township of Redford.

“Detroit Diesel is extremely pleased to announce this major new investment in the Redford facility,” said
Reinhardt. “The decision to move ahead with a sizeable upgrade of the Redford facility shows tremendous confidence in the capabilities of our workforce and operations.”

By 2007, the Redford facility will accommodate the manufacturing of an all-new heavy-duty truck engine. Currently in development by Detroit Diesel and parent company DaimlerChrysler – the engine will be launched in 2007 and 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 popular Detroit Diesel Series 60 engine. In the NAFTA market, the new engine will be installed in heavy-duty vehicles produced by business units of Freightliner LLC.

Sterling and Western Star will relocate from Willoughby, Ohio, to Redford in the second quarter of this year.

For more information, visit www.detroitdiesel.com or www.freightliner.com