Daimler Truck North America (DTNA) has announced plans to invest up to $285m in its Detroit manufacturing plant, located in Redford Township, Michigan.

This investment, made in collaboration with the Michigan Economic Development Corporation (MEDC), will modernise the plant, which is part of Detroit Diesel Corporation, a DTNA subsidiary.

The initiative is supported by the state’s Critical Industry Program, which is designed to foster capital investments in Michigan's key industries.

The investment will focus on reinvesting in the Internal Combustion Engine (ICE) platform and enhancing the plant's Research and Development (R&D) capabilities.

These efforts aim to sustain and advance existing technologies, supporting the growing demand for cleaner, more fuel-efficient commercial truck engines.

“This strategic investment aims to modernise and enhance the existing plant to maintain its current production capacity and innovation of ICE components, which remain crucial for many commercial trucking applications,” the company said in its press statement.

DTNA's expansion plan also includes the creation of more than 400 new jobs at the facility, in addition to the current workforce of over 2,000 employees.

The MEDC has provided a $27.7m performance-based grant, while the Michigan Strategic Fund has offered additional support with an estimated $3.29m in abatement incentives.

Construction of the upgraded facility is expected to begin in early 2025, pending the completion of planning and approval processes.

Daimler Truck North America powertrain operations vice president Matt Pfaffenbach said: “Our Detroit Manufacturing Plant, with its legacy of over 85 years in Michigan, stands as a testament to innovation and progress. This expansion is about more than just innovation; it’s about creating job opportunities and upskilling our workforce to meet the demands of tomorrow’s technology, while helping to stabilize the heavy-duty supply chain.

“This transformative project will propel us into a new era of manufacturing excellence while strengthening our role in the industry and bringing significant growth to the community we call home. It would not be possible without the support of the MEDC, and we are proud to support both our community and our employees through this initiative.”