Detroit Diesel to Increase Production at Mich. Plant

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Penske Truck Leasing

Engine maker Detroit Diesel Corp. said Friday it will spend $194 million to “substantially” increase production at its plant in Redford, Mich.

The state of Michigan will contribute $57 million to the effort in tax benefits and other measures, Bloomberg reported. The funds will mainly be spent on cylinder head production.

Detroit Diesel will also use the money to redesign facilities, improve infrastructure and purchase machinery, the Wall Street Journal reported. The changes will start next month and be finalized in September 2011.

The manufacturer, which is part of Daimler AG, is increasing production due to high demand for its BlueTec diesel engines, the company said.