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Detroit Diesel Corporation (DDC) Announces New Medium-Duty Engine Assembly Line to Debut at Redford Facility

        Growth of MBE 900 engine in medium-duty market fuels decision
                     to initiate North American assembly.

    REDFORD, Mich., Feb. 23 /PRNewswire/ -- Detroit Diesel Corporation today
announced that U.S. assembly of the successful Mercedes-Benz MBE 900 medium-
duty diesel engine will be fully operational by Spring 2007.  This new engine
assembly line will help support the expanding medium-duty presence of
Freightliner LLC business units in the North American truck market.
    European and Asian versions of the MBE 900 will continue to be
manufactured at DaimlerChrysler's Mannheim, Germany, Engine Plant.  Detroit
Diesel Corporation and Freightliner LLC are both part of DaimlerChrysler.
    "The MBE 900 has become a very popular choice among our customers and its
sales have grown alongside our medium-duty vehicle sales," said Rainer E.
Schmueckle, president and chief executive officer of Freightliner LLC.  "Our
growth plans, coupled with the capabilities of the facility to assemble a
world-class product, helped solidify the decision to locate North American
assembly of the engine at Redford."
    Detroit Diesel offers four- and six-cylinder versions of the MBE 900
engine for the medium-duty market that provide coverage from 170 to 330
horsepower.  The engine delivers outstanding fuel economy, superior
performance and a high power-to-weight ratio.  Available in North America
since 1999, the MBE 900 powers customer trucks spanning a wide variety of
commercial vehicle applications including beverage, utility, construction,
fire and emergency, and pick-up and delivery applications.  Since its
introduction, more than 65,000 MBE engines have been sold in the North
American market.
    "The customers in the medium-duty market are diverse and need a highly
reliable engine that fits their specific applications," said Carsten
Reinhardt, president and chief executive officer of Detroit Diesel.
"Universally our customers tell us the reliability of the engine provides
significant value to their operations by providing a truck that runs 'day-in
and day-out.'  World-class fuel economy also delivers quantifiable savings to
our medium-duty customers.  These two factors have been considerable catalysts
to the growth of the MBE 900."
    Detroit Diesel is currently making preparations to create a new line for
final assembly and testing of the MBE 900.  Pre-production of the engine will
begin in the Fall 2006, with full production anticipated for Spring 2007.
    "In order to continue meeting the needs of our customers and providing
them with a high-quality engine, we will be making significant changes to
reconfigure our manufacturing operations to support the MBE 900 engine," added
Reinhardt.  "This is great news for our workforce and the Southeast Michigan
manufacturing sector."
    By 2007, the Detroit Diesel facility in Redford will be the only
manufacturing facility in the commercial truck industry that produces a full
line of medium- and heavy-duty engines and axles for the commercial truck
markets.
    Detroit Diesel Corporation is the leading manufacturer of on-highway
medium- and heavy-duty diesel engines for the commercial truck market.  The
company offers a complete line of engines from 170 to 515 horsepower for the
on-highway and vocational markets.  Through its corporate headquarters in
Detroit, Michigan, Detroit Diesel is engaged in the design, manufacture, sale
and service of these products, in addition to supporting alternative and
hybrid engine strategies for the commercial truck marketplace.  Detroit Diesel
is a subsidiary of DaimlerChrysler and part of the Freightliner Group.
    Freightliner LLC, headquartered in Portland, Oregon, is the largest
manufacturer of heavy-duty trucks in North America and a leading manufacturer
of medium-duty vehicles.  Freightliner produces and markets Class 3-8 vehicles
under the Freightliner, Sterling, Western Star, American LaFrance and Thomas
Built Buses nameplates.  Freightliner LLC is a company of DaimlerChrysler, the
world's largest commercial vehicle manufacturer.


SOURCE Detroit Diesel Corporation




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    CONTACT:
    Liane Bilicki of Detroit Diesel Corporation,
    +1-313-592-5266, liane.bilicki@detroitdiesel.com