Daimler to invest $375 million to build diesel engines near Detroit

[kscarbel2]

Reuters / November 20, 2015

The head of Daimler AG's commercial truck operation said the company will invest $375 million at a complex near Detroit to build diesel engines for medium trucks, expanding a strategy of building and selling trucks, engines, transmissions and axles as a package.

The 5-liter DD5 and 8-liter DD8 are Daimler’s new generation medium-duty diesels introduced in Europe three years ago.

The proprietary diesels will be available in the Freightliner M2 starting next year with initial engines built in Daimler’s Mannheim, Germany plant. Full U.S. production of the MD engines is scheduled for the end of 2018 and availability will then be expanded to DTNA’s Western Star, Freightliner, Custom Chassis and Thomas Built Bus brands. Currently Cummins supplies all of DTNA’s medium-duty engines. Once the Detroit engines are introduced, the company will continue to offer Cummins engines as an option, according to Martin Daum, president and CEO of DTNA.

“The success of our integrated powertrain for heavy-duty vehicles in the US is phenomenal, said Wolfgang Bernhard, head of the Daimler Trucks and Bus business during the inauguration ceremonies. “Already, over 40% of the Freightliner Cascadia models are supplied with the DT12 automated manual transmission. So, naturally, it makes sense to now also produce this bestseller locally. … And I am really excited, that in the future we will also produce our medium duty engines DD5 and DD8 here. This is a major step in executing our global platform strategy.”

Daimler had previously expanded its Detroit operations to produce automated manual transmissions for heavy trucks, which have been "a runaway success," said Wolfgang Bernhard, head of Daimler's global commercial truck operations.

Bernhard said he expects demand for medium and heavy trucks will be "slightly softer" in North America next year, but should still be above relatively strong 2014 levels. European demand will be flat and Brazil will "continue to be very difficult," he said.

Earlier this week, rival truck maker AB Volvo said it planned to idle its North American factories for a total of 2.5 weeks in December and January to reduce swelling inventories.

Bernhard said Daimler, which controls about 40 percent of the U.S. heavy truck market, is not cutting back. Production at its Detroit engine and transmission factories is still running around the clock, seven days a week, he said.

Daimler's latest investment in Detroit builds on a strategy Bernhard has pursued to bring engineering and manufacturing of the company's commercial trucks under one roof.

Traditionally, especially in North America, heavy truck makers such as Paccar and Navistar have purchased engines, transmissions, axles and other major components from suppliers such as Cummins, Eaton, Caterpillar and Dana.

Government demands to cut carbon dioxide emissions are putting more pressure on commercial vehicle makers. Bernhard said Daimler's response will be to design and engineer itself more of the technology in its vehicles.

"We can perfectly optimize those components to each other to get the best fuel economy and reliability," he said.

Bernhard said Daimler is also using its own technology to develop autonomous driving systems for future commercial vehicles. He said trucks that could drive themselves on open freeways could be available by 2020. Daimler is testing autonomous driving technology on heavy trucks in Germany and the United States.

Press Release - http://media.daimler.com/dcmedia/0-921-656186-1-1867081-1-0-0-0-0-1-0-1549054-0-1-0-0-0-0-0.html?TS=1448246422942

[kscarbel2]

Daimler Trucks to Bring New Detroit Medium-Duty Engine Line to U.S.

Heavy Duty Trucking / November 20, 2015

Daimler Trucks Friday announced a $375 million investment to enable production of the new DD5 and DD8 medium-duty engines at Detroit’s Redford, Mich., plant.

Joined by Michigan Gov. Rick Snyder and nearly 2,000 UAW workers, Daimler Trucks celebrated the announcement of the new lines of DD5 and DD8 medium-duty engines and officially launched production of the company’s Detroit DT12 automated manual transmission.

The new engines, first announced at the 2014 American Trucking Associations annual conference, will be available in select Daimler Truck North America vehicles by the end of 2016. Full production will take place in Detroit by the end of 2018, according to Martin Daum, president and CEO of Daimler Trucks North America.

The engines will be initially built and shipped from Daimler’s powertrain facility in Mannheim, Germany, with industrialization at the Detroit facility in 2018.

DTNA’s entire product line-up, including vehicles equipped with the DD5 and DD8, will meet federal 2017 greenhouse gas/fuel economy standards early.

The theme of the day was “Built in Detroit,” and celebrated the long successful history of Detroit powertrain manufacturing at the Detroit brand Headquarters.

“Our investment is a tangible example of how we maximize the use of our global platforms optimized for regional markets,” said Wolfgang Bernhard, Daimler AG Board of Management member responsible for trucks and buses. “'Built in Detroit' is not just a marketing slogan; it is our commitment to strengthen the industrial base in Detroit and to deliver the most fuel-efficient engines to our customers. I am convinced: With our medium-duty engines we will repeat the success story of our best-selling heavy-duty engines.”

The new Detroit DD5 and DD8 engine development is another example of Daimler’s international development effort, with global testing and validation being undertaken in both Europe and the United States, and series production in Europe since 2012.

For sale in limited quantities, the Detroit DD5 medium-duty engine will be available in 2016 on the Freightliner M2 product line, with extensive availability in 2018 across DTNA’s product portfolio including Freightliner, Western Star, Thomas Built Buses, and Freightliner Custom Chassis vehicles.

The “Built in Detroit” event also celebrated the production commencement of Detroit’s DT12 automated manual transmissions. With the launch Friday, the company is delivering on the commitment made during President Obama’s visit to the Redford facility in December 2012.

[kscarbel2]

Daimler Kicks Off Production of AMTs in North America for First Time

Transport Topics / November 20, 2015

Daimler Trucks North America officially launched production of its Detroit-branded DT12 automated manual transmission on Nov. 20, while simultaneously announcing a $375 million investment to produce medium-duty engines here in 2018.

“Our investment is a tangible example of how we maximize the use of our global platforms optimized for regional markets,” said Wolfgang Bernhard, head of Daimler’s global truck and bus unit.

Daimler officials, including President Martin Daum, were joined by Michigan Gov. Rick Snyder and nearly 2,000 UAW workers at the plant located just outside Detroit for a celebration that came 35 months after President Obama toured the same facility.

It was during that visit by Obama that DTNA originally announced its intention to make transmissions outside of Germany for the first time. The company invested $100 million and created 170 new jobs to make it a reality.

Earlier this year, Daum said demand for AMTs was outpacing the company’s ability to produce them. The AMT is available on the Freightliner Cascadia and Western Star 5700XE models.

In recent years, several truck manufacturers have been pushing a vertical integration strategy. In Daimler’s case, the powertrain brings together a Detroit engine, transmission and axles. The company said the powertrain is part of its effort to have uniform global production standards.

Daimler actually began making the DT12s about four weeks ago and is producing about 120 per day.

Meanwhile, DTNA initially announced its intention to produce the DD5 and DD8 medium-duty engines in October 2014. At the time, Daum said the engines would be exported from Germany starting in 2016, with North American development expected in 2018.

“Michigan has long been the world’s automotive leader, and we are proud that Daimler will continue to play a big role in our state’s reinvention moving forward. This is an investment in Detroit and the hard-working people of Michigan,” Snyder said.

DTNA said the DD5 and DD8 lines will add about 160 new jobs to the Detroit facility. The engines will meet 2017 greenhouse-gas standards.

[kscarbel2]

Detroit ‘completes the hat trick’ with DT12 production brought to Michigan

Truck News / November 21, 2015

In a hockey-themed plant inauguration, Daimler Trucks’ Detroit brand celebrated the start of production of its DT12 automated manual transmission and announced the launch of its mid-range engine line here Friday.

The hot-selling DT12 was previously built in Gagenau, Germany and shipped to North America for installation in Freightliner and Western Star trucks. Daimler pumped US$100 million into its Redford, Mich. plant to bring production to these shores.

“More than 40% of our Freightliner Cascadia and Western Star trucks are sold with an automated transmission and the take rate is still climbing,” said Dr. Wolfgang Bernhard, head of Daimler trucks globally. “It is a huge success and it makes us really proud. It is now time to make the next step; it’s my pleasure today to announce the start of production of our DT12 right here in the US, right here in Detroit, right here in Redford.”

Production at the plant was momentarily halted to celebrate the milestone and about 2,000 employees, media and dignitaries gathered to hear Bernhard’s remarks. The plant inauguration was emceed by former Detroit Red Wing Micky Redmond. It was also attended by a beaming Roger Penske, who bought the company in 1988, saved it from potential bankruptcy, turned it around on the success of the Series 60 and then sold it to Daimler.

“I didn’t know what I was getting into but it was an opportunity,” Penske said, noting at the time the company had lost $600 million in three years, languished with 3% market share and was suffering strained relations with employees. “I’m proud to see what is taking place today.”

Martin Daum, CEO of Daimler Trucks North America, said the company has “completed the hat trick” by bringing DT12 production to Redford, where it also builds its heavy-duty engines and axles.

“We now manufacture the entire powertrain lineup – engines, axles and transmission – right here in Detroit and that means we can integrate, synchronize, make it perfect,” said Bernhard. “We can offer the most powerful powertrain in the country and it gives our customers more reason to demand Detroit.”

Daimler also announced the launch of its medium-duty DD5 and DD8 engines, which will also be built in Redford, eventually. Configuring the plant for the mid-range engines represents another US$375-million investment into the facility.

“Today, we complete our lineup,” said Bernhard. “We launch our new medium-duty engines, the DD5 and DD8 into the US market and what’s more, we’re not only going to sell them in the US, but by 2018 we will also build them right here in Detroit, right here in Redford.”

With the new engine launch, Daimler says it will bring the benefits of vertical integration seen on the heavy-duty side to the medium-duty market.

“Detroit medium-duty engines will provide what no other manufacturer in North America can offer – a total vehicle solution that matches Daimler’s global engineering prowess with the most complete lineup bar none in the industry,” said Daum. “I am pleased to announce that select Daimler Truck North America vehicles will be available with medium-duty power by the end of 2016, and full production will take place in Detroit by the end of 2018.”

In a press conference following the plant inauguration, Daum said Daimler will continue with its two-supplier strategy, offering Cummins engines as well in its medium-duty trucks.

“This won’t change our business with Cummins because we have in every segment a two-supplier strategy. We want to give our customers choice and ultimately it’s the customers that are going to decide,” Daum said.

When medium-duty engine production is brought to Michigan in 2018, it will add about 160 new jobs. Until then, they’ll be produced in Mannheim, Germany. The new engines will be available for order in 2016 in the Freightliner M2. Details regarding engine ratings and other specific features of the new mid-range engines were not yet revealed. Daimler Trucks North America has in recent years become a stronger player in the medium-duty market, capturing about 40% of the US Classes 6/7 segments in each of the past few years.

Daimler also announced its entire lineup will comply with impending 2017 greenhouse gas emissions requirements early.

Daum said he expects the truck market to remain strong in 2016, though orders will likely land somewhere between an excellent 2015 and a very good 2014.

“We will finish the year strong and the start of the year will be strong through the first quarter,” Daum said. “We’ll see how the rest of the year unfolds. We don’t have that security we had a year ago where we were sold out at the beginning of the year but this is not normal for business, you should every day worry for your business and fight for it.”

[TeamsterGrrrl]

Sounds like they're trying to squeeze Cummins outa the market.

[Red Horse]

Sounds like they're trying to squeeze Cummins outa the market.

Amen- and think what this does to Ford's attempt to make the 6.7 Power Stroke work as their sole engine in class 6 and7.

The Daimler gorilla gets bigger and bigger sad to say.

[jackb61sx]

They are working off the model of selling lower cost trucks to large freight or lease companies that buy based on cost and are not looking for a custom truck but for lack of a better word a modular truck that you plug in xyz componet groups. The trucks appeal to a cost conscious buyer and is not looking for longevity. That is why they own so much of the market and there business model is working large prophets off lower price points and large volume equals the giant they are.

[kscarbel2]

They are working off the model of selling lower cost trucks to large freight or lease companies that buy based on cost and are not looking for a custom truck but for lack of a better word a modular truck that you plug in xyz componet groups. The trucks appeal to a cost conscious buyer and is not looking for longevity. That is why they own so much of the market and there business model is working large prophets off lower price points and large volume equals the giant they are.

You are exactly right. They are meeting the new demand for "low cost trucks". (http://www.bigmacktrucks.com/index.php?/topic/42789-china-india-africa-and-indonesia-expected-to-boost-sales-of-mid-market-value-trucks/)

[Red Horse]

Jack/KSC

I can't see how you are viewing this as a "low cost,cookie cutter move". I can't think of anyone who has more engineering capability/technology capability than Daimler. What am I missing? Who has the best big engine rep right now? Volvo/Mack?-Cummins? I do believe it is DD. Think the halo effect won't rub off on these medium duty versions?

I hear you KSC on that cheap world truck- but I think that starts for example with this Arkane (sp?) cab over which you recently educated me on in terms of its China sourced cab.

I really can't see the F'liner M2 and the SD mediums as falling into that pool. IMO- as always my opinion and two bucks will get you a medium in Dunkin D.