Detroit Diesel was awarded a $1.3 million Michigan Business Development Program performance-based grant Monday in Lansing, according to Redford Township Supervisor Tracey Schultz Kobylarz.
The grant was awarded based on a proposed investment of up to $208 million at Detroit Diesel and is going to mean 245 new jobs at the company, which has its manufacturing facility in Redford, according to information from the Michigan Economic Development Corporation.
Detroit Diesel’s plans, according to the MEDC, include upgrades and new machinery and equipment for a new medium-duty engine line at its facility.
“Redford Township and Detroit Diesel enjoy an excellent working relationship built on mutual respect for both of our needs,” Kobylarz said.
“They are the largest manufacturing facility in the township and currently employ approximately 2,000 people. Bringing this new line to Redford Township increases job opportunities not only for our residents but for all residents in Southeastern Michigan,” she said.
However, Detroit Diesel declined further comment and issued a statement saying nothing was official:
“Detroit Diesel Corp. announced in 2012 the investment of $120 million to produce the Detroit DT12 automated manual transmission and the new Detroit DD15 proprietary asymmetric turbo in its facility in Detroit, Michigan. The investment will result in the increase of 115 jobs to the facility and production is on schedule for the beginning of 2016,” the statement read.
“Detroit Diesel Corp. continues to look for opportunities for future growth in its facility, and is in active discussions with the state and Township of Redford to this end for future development. However, Detroit Diesel Corporate has no official announcement at this time – and any final details or plans at this point would be purely speculation. All economic discussions reflect the state and local authority’s continued support for potential future investment; however, as always, nothing is officially confirmed until announced by the company.”
Increases in employment have a positive impact on local businesses, Kobylarz said.
“Diesel’s current employees already know of the places nearby to live, play, worship and learn,” she said. “As a result of this investment, 200 more people will see why Redford Township is also a great place to work.”
The Redford site was chosen even though the company’s Mannheim, Germany, location currently produces the medium duty engine, and could continue to, if they were to expand current capacity.
“With the commitment of state and local support, the company made the decision to place production in Michigan so it will be made under the ‘Detroit’ brand name,” according to information from the Michigan Economic Development Corp.
The local commitment from Redford Township will include assisting Detroit Diesel in recruiting efforts through advertisements, job fairs and goal compliance through statistical analysis and support specifically related to employment, according to Kobylarz.
“We intend to work closely with Diesel to ensure that they are able to recruit the people they need for the many jobs they have available,” she said. “Our efforts, while time consuming, will not cause additional overtime or expenses to the township.”
“This partnership is a very good example of a public/private collaboration that will have a long-standing positive impact on the corporation, township, business and residential communities,” Kobylarz said.
Founded in 1937, Detroit Diesel Corp. is a member of the Daimler group, and is a manufacturer of heavy-duty diesel engines for the commercial truck market.
The 3 million-square-foot manufacturing plant in Redford was built more than 74 years ago.
In 2013, the company became a wholly-owned subsidiary of Daimler Trucks North America LLC, which is a wholly-owned subsidiary of Daimler North America Corp.
The company was awarded a Retention MEGA credit as well as two large Brownfield MBT credits in 2010 to add new manufacturing capacity into the facility and to retain jobs.
To date, both Brownfield projects have been completed. Additionally, in 2013, the company received a $250,000 Business Development Program grant for new jobs created related to the turbo-charger line being established in the Redford facility.
Source: MEDC