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Detroit Diesel UAW Contract Agreement Ratified

15 September 1998

Detroit Diesel UAW Contract Agreement Ratified

    DETROIT, Sept. 15 -- Detroit Diesel Corporation
and United Auto Workers (UAW) Local 163 announced today that their new six-
year master agreement was ratified on Monday, September 14, by 80% of those
voting.  The new agreement covers 2,000 employees represented by the UAW at
Detroit Diesel's Redford manufacturing facility and will expire at midnight on
October 30, 2004.
    "We are certainly pleased with the agreement," said Roger Penske, Chairman
of Detroit Diesel.  "It provides the foundation for further enhancing our
operating efficiencies while maintaining the excellent relationship we have
established with the UAW."
    "Our membership has shown its confidence in our cooperative direction by
approving the agreement," said Jim Brown, UAW Local 163 Shop Chairman.  "The
agreement provides for an excellent package for our employees while
strengthening our competitiveness in the marketplace."
    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
Partners, 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.