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Detroit Diesel Reaches Tentative Contract Agreement With UAW

31 August 1998

Detroit Diesel Reaches Tentative Contract Agreement With UAW

    DETROIT, Aug. 31 -- Detroit Diesel Corporation
and United Auto Workers Local 163 jointly announced today that a tentative
agreement was reached last night on a new master contract.  The terms of the
contract have not been disclosed pending a ratification vote by the
membership.  The current contract expired at midnight on August 30, 1998.
    Both parties state that the new agreement permits for a continued positive
relationship between Detroit Diesel, the UAW and all employees of the company.
    Detroit Diesel Corporation is engaged in the design, manufacture, sale and
service of heavy-duty diesel and alternative fuel engines, automotive diesel
engines, and engine-related products; and provides financing through Detroit
Diesel Capital Corporation.  The Company offers a complete line of diesel
engines from ten to 10,000 horsepower for the on-highway; off-road;
automotive; and power generation markets.  Detroit Diesel services these
markets directly through a worldwide network of more than 2,500 authorized
distributors and dealers.  DDC is a QS-9000 certified company.
    Detroit Diesel's major shareholder is Penske Corporation, a closely-held,
diversified transportation services company whose operations include Penske
Truck Leasing Company, Diesel Technology Company, Penske Automotive Group,
Inc., Penske Auto Centers, Inc., Penske Motorsports, Inc., and Penske Capital
Partner, L. L. C.  The Penske group of businesses has annual revenues
exceeding $6 billion and employs more than 28,000 people around the world.
     Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com.