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Daimler to invest $194 million in U.S. engine plant

From Reuters| June 19 , 2010 13:49 BJT

Daimler said it will invest $194 million to expand production capacity at its U.S. plant in Redford, Michigan in response to rising demand for fuel-efficient diesel engines.

That figure includes $56.8 million of incentives from the Michigan Economic Growth Authority, the German carmaker said on Friday.

Daimler said it will spend a large part of the investment on cylinder head production. It also plans to use some of the funds to redesign the manufacturing facilities and improve plant infrastructure.

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