6 November 1997

Curitiba, Brazil—Detroit Diesel Corporation today inaugurated its new engine assembly operation in Curitiba, State of Parana, Brazil. This new operation will have the capacity to produce up to 31,000 TD (Turbocharged Diesel) engines per year, producing 4-, 5-, and 6-cylinder automotive diesel engines for the Mercosur market and for worldwide export. The 64,500 sq. ft. facility has been designed to meet the best environmental standards of Brazil and DDC.

Initially, the Curitiba plant will supply 2.5L TD diesel engines to Chrysler Corporation for use in its new Dodge Dakota pickup truck assembled in Brazil, and for the Jeep(R) Cherokee sport utility vehicle, assembled in Argentina. The engine will also be used by the Toledo assembly plant in Toledo, Ohio (USA) for use in export production of the Jeep Cherokee. The TD engine model is a 2.5 liter, four-stroke, turbocharged and intercooled diesel engine. An initial production test shipment is scheduled for early November, with regular production shipments to commence early in January 1998.

The Brazilian 2.5L TD diesel engines will be identical to the engines produced in Detroit Diesel's Cento, Italy facility. This operation in Brazil allows using the proven design of the Cento product in a new market and providing the local presence necessary to support that market. Detroit Diesel's Cento plant supplies more than 70,000 automotive diesel engines annually to major European manufacturers including Chrysler, General Motors (Opel) and Ford Motor Company. Detroit Diesel Corporation Chairman, Roger S. Penske said, "Detroit Diesel is committed to growing our automotive business and we are pleased to enter into the Mercosur market. Using products of local, high-quality suppliers in Brazil combined with critical components from our Italian operation, we expect to quickly ramp up production of a high quality product." DDC has long-standing relationships with Brazilian component suppliers and imports more than $24 million worth of material from Brazil annually.

Source: Detroit Diesel