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Detroit Diesel Announces Joint Agreement With Hyundai Motor Company

11 January 2000

Detroit Diesel Announces Joint Agreement With Hyundai Motor Company

    DETROIT, Jan. 11 -- During the North American International
Auto Show, Detroit Diesel Corporation (DDC) announced it has
reached agreement with Hyundai Motor Company for the joint design, development
and manufacture of two new automotive diesel engines.  The engines will be
3 and 4 cylinder models at 1.5 and 2.0 liters respectively, with power outputs
of 56 kW and 82 kW at 4000 rpm.  Both engines will feature electronically
controlled common rail fuel injection.
    "These new engines are the result of combining the resources of Hyundai
and DDC's VM Motori operation in Europe.  We had three major goals in mind in
the initial design phase and have surpassed all three," according to Malcolm
Whittaker, Senior Vice President of Automotive Sales.  "Excellent fuel economy
and low emissions were of course two of the three goals, but we additionally
demanded lower levels of noise.  The results of our early tests show we have
surpassed all our goals."
    These two new engines will be able to power the entire range of Hyundai
vehicles and enables Hyundai to enter the rapidly growing small diesel engine
market.  Start of production is targeted during the year 2000.
    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.  The Company offers a complete line of
diesel engines from 22 to 10,000 horsepower for the on-highway; off-road;
automotive; and power generation markets.  Detroit Diesel services these
markets directly and through a worldwide network of more than 2,800 authorized
distributors and dealer locations.  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., and Penske Capital Partners, L.L.C.  Penske
Corporation and its subsidiaries manage businesses with annual revenues
exceeding $10 billion and employ more than 33,000 people around the world.
    Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com