PRESS RELEASE

Detroit Diesel Announces Reorganization

5 February 1997

    DETROIT, Feb. 5 -- Detroit Diesel Corporation (DDC)
announced today the implementation of a new corporate operating
structure designed to enhance customer responsiveness in the global
marketplace, increase profitability and position the Company for continued
growth.
    The new operating structure of nine businesses will be based upon eight
engine families and the growing Detroit Diesel Capital Corporation, the
Company's wholesale financing arm.  Each product line will be managed by a
general manager who will be responsible for all key business functions
including design, development, manufacturing, product support and general
administration.  Each general manager and his team will have the authority,
and responsibility for performance and profitability.
    Supporting the product lines will be small corporate functions which will
assure consistent policies, standards and practices, as well as providing
logical economies of scale where appropriate.  The product lines will also use
the existing corporate, market focused sales activities which has been a
hallmark of DDC's resurgent growth over the last decade.
    "We are implementing this new organizational structure in response to
Detroit Diesel's accelerating worldwide growth.  As our markets continue to
proliferate and the range of our product lines keeps increasing, we began to
look for better ways to meet the changing needs of our global customer base
while positioning the Company for the future.  Our new operating structure
allows us to be highly responsive to customers and specific product
requirements while strengthening our reputation as a technologically advanced
global engine manufacturer," said Roger Penske, Chairman.
    Detroit Diesel's new operating structure is focused on the following seven
Product Lines: 2-Cycle/Remanufacturing; Series 2000/4000 Engines; Series 50/60
Engines; Series 55 Engine; Series 30/40 Engines; 2.5/3.8 Liter Engines;
Detroit Diesel Capital Corporation and two additional business segments to be
announced at a later date.  Reporting to the Company's Executive Group, the
general manager and product team will be accountable for key financial,
quality and market performance measurements.
    "Our growing global customer base challenges us to ever more responsive
service.  We must move aggressively to take advantage of new business
opportunities while, simultaneously, increasing our profitability, reducing
our costs and increasing shareholder value.  Since the Company's founding in
1988, Detroit Diesel's employees have worked hard to succeed in a tough
industry worldwide.  They consistently have demonstrated their great
flexibility in adapting to rapidly changing business conditions.  Now we need
to re-invent ourselves again and grow this company as a profitable, leading
global engine supplier into the next century," said Timothy Leuliette, Vice
Chairman.
    Detroit Diesel Corporation designs, manufactures, markets, services and
provides aftermarket and remanufactured products for a full range of high
performance diesel and alternative fuel engines from ten to 10,000 horsepower
and offers financing through its Detroit Diesel Capital Corporation
subsidiary.  Detroit Diesel serves the on-highway truck, coach and bus,
automotive, construction, mining and industrial, power generation, marine, and
military markets through a worldwide network of over 2,500 authorized
distributors and dealers.  DDC announced today 1996 revenues of $1.96 billion.
    Detroit Diesel Corporation's World Wide Web address is
http://www.detroitdiesel.com.

SOURCE  Detroit Diesel Corporation