Detroit Diesel Announces Series 60 Production Capacity Increase
16 September 1998
Detroit Diesel Announces Series 60 Production Capacity Increase
DETROIT, Sept. 16 -- Detroit Diesel Corporation
announced today it is increasing production capacity of its Series 60 heavy-
duty engine at its Redford, Michigan manufacturing facility in response to
record sales orders. The capacity increase will be achieved through the
elimination of bottleneck operations and the addition of a second shift on the
Company's new Series 60 north assembly line. The Series 60 engine, which is
used in an expanding array of global markets, including heavy-duty truck, off-
highway and marine applications, will have a production capacity of 300
engines per day following the production increase. Jim Brown, Shop Chairman
of UAW Local 163, said, "We see this opportunity to further expand the
business as one of the results of our cooperative, productive partnership as
well as our new competitive agreement with Detroit Diesel." The capacity
increase will be available beginning in the fourth quarter of 1998.
Timothy D. Leuliette, Vice Chairman of DDC, said, "We are pleased to be
able to respond to this increase in market demand with the innovative use of
our production facilities, the cooperative efforts of our supplier community
and the support of our UAW partners." Mr. Leuliette went on to say, "As a
result of this action and other cost improvement initiatives, we remain
confident in the outlook for the remainder of the year, and see positive
momentum as we look forward to 1999."
The Company indicated that its discussions with the U.S. Environmental
Protection Agency (EPA), the U.S. Department of Justice and the California Air
Resources Board to address NOx emissions from heavy-duty diesel engines under
certain driving conditions are continuing. As previously reported, while DDC
believes its engines are in compliance with EPA emissions standards, it
continues to fully support the cooperative efforts of industry and government
to resolve emissions issues and advance technology to attain further
reductions in NOx and other emissions. The Company is hopeful that an
agreement can be reached, but indicated that such a resolution may have a
material impact on financial results.
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.