Michigan diesel engine manufacturer to create 436 jobs with $285M expansion

Detroit Diesel Corp., a diesel engine manufacturer, plans to invest $285 million expanding its facility to produce parts for zero-emission vehicles.

The investment is expected to create 436 jobs at Detroit Diesel Corp.’s manufacturing facility in Redford Township near Detroit.

The Michigan Strategic Fund backed the project Tuesday, Dec. 10 with a $27.7 million state grant and a State Essential Services Assessment tax break valued at $3.29 million.

“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,” said a statement from Matt Pfaffenbach, the company’s vice president of powertrain operations.

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Founded in 1938, Detroit Diesel Corp. now operates under Daimler Truck North America, producing engines, transmissions and axles for commercial vehicles.

Detroit Diesel Corp. entered the zero-emission vehicle market in 2021 by creating a lineup of electric battery products. A project memo says the proposed expansion would maintain current production capacity while equipping the plant to manufacture electric components for medium- and heavy-duty electric trucks.

Of the jobs created, 335 of those will be production positions paying a median wage of $25.86 and the remaining 101 will be salaried, mostly being engineers, with an estimated salary of $113,000.

“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,” Pfaffenbach said.

The Michigan Strategic Fund backed seven other projects during its December board meeting.

This included a $100 million grant to support the University of Michigan’s $1.2 billion high-performance computing facility in Ypsilanti.

Benteler Automotive Corp. received a $1.4 million state grant to support a $105 million battery components assembly plant in Wyoming. Construction is now underway on the new 315,000-square-foot manufacturing facility that is being built on the site of a vacant General Motors stamping plant.

The board also OK’d a $5.1 million grant for Howmet Aerospace’s $107.5 million expansion in Whitehall, an investment expected to create up to 300 new jobs.