Daimler to build new diesel engine production line image

Daimler AG will invest 375 million dollars in a complex near Detroit to build diesel engines for medium duty trucks.

The announcement was made by the head of Daimler AG’s commercial truck operation, as being part of a plan of increasing its engines output, and accordingly selling more trucks. The company has committed to a 370-million-dollar investment for these purposes, and for building more transmissions and axles as a package as well. Daimler has already boosted its Detroit activity to produce heavy-duty automatic transmissions, which have been “a runaway success,” Wolfgang Bernhard, head of Daimler’s global commercial truck operations, told Reuters today ahead of an appearance in Detroit.

This strategy is not exactly consistent with the demand expectations for medium and heavy trucks in North America in 2016, as the projections indicate just a light increase in the segment, but still above 2014 solid levels. European demand will be standstill and Brazil will “continue to be very difficult,” Bernhard said. He also added that Daimler is not lowering its engine and transmission production, and plants will work at full capacity.

The following period is predicted to be rather difficult for the commercial vehicles makers, as the Government wants to decrease the level of emissions. In response to this new challenge, Bernhard said Daimler’s would have to develop more technologies that would bring the vehicles up to desired standards. “We can perfectly optimize those components to each other to get the best fuel economy and reliability,” he said.

Via Automotive News