jburelle said:Any new info on the new dodges? Anything? Any juice, gossip or otherwise? I hate suspense. Its killin' me. John
Well, Ok, how about rumors with something to chew on:
That the '07 engine will be a Daimler-Benz product manufactured by Detroit Diesel...
Note (below) there is...
1) aquisition of the remaining part of Detroit Diesel
2) emissions readiness
3) inclination towards the medium-duty market with 4 and 6 cylinder engines.
4) they mention the 'Dodge Ram' rumor.
5) published (elsewhere) mention of the Dodge/Cummins contract ending in 2007
Mark
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Found at: Diamlerchrysler Gears Up Truck Business With Detroit Diesel Western Star
"Daimlerchrysler Gears Up Truck Business With Detroit Diesel Western Star" Automotive Industries, August, 2000 by Dale Jewett
Daimler Chrysler AG'S moves to bring Detroit Diesel Corp. and Western Star Trucks into the corporate fold represent an $877 million maneuver to solidify its position as one of the top heavy-duty truck makers and guarantee it an ample supply of powertrains.
DaimlerChrysler pulled off the acquisitions within a day of each other in late July, paying $454 million for Western Star and about $423 million for the 78 percent of Detroit Diesel that it didn't already own.
Western Star, the Canadian based maker of heavy trucks, joins Freightliner, Sterling (the former Class 8 truck operations of Ford Motor Co. ), and Mercedes-Benz in the Daimler-Chrysler truck stable.
The Detroit Diesel deal helps guarantee a steady supply of engines for that truck lineup -- Detroit Diesel is Freightliner's biggest engine supplier. The engine maker, controlled by entrepreneur Roger Penske, also supplies small diesels used in Dodge Dakota pickups built in Brazil, as well as some vehicle applications in Europe.
Penske guided the revival of Detroit Diesel from the late 1980s after it had been castoff as a money-losing business from General Motors Corp. Penske negotiated a deal that gave him Detroit Diesel's workforce and its corporate office and manufacturing facility in suburban Detroit for a lease price of $1 per year. Last year the company posted profits of $49. 2 million on sales of $2. 36 billion. It now has plants in the U. S. , Brazil and Italy. The crown jewel of the company's lineup is the Series 60 engine for heavy-duty trucks.
More than a year ago DaimlerChrysler had made a bid to acquire the rest of Detroit Diesel but was rebuffed by Penske, who holds nearly 49 percent of the company's stock and wasn't happy with the offer.
DaimlerChrysler's minority stake in Detroit Diesel led to joint ventures with the automaker's MTU-Friedrichshafen unit
For Detroit Diesel the acquisition funds its future, says John Stark, industry analyst and publisher of Stark's Truck and Off-Highway Ledger.
"This gives Detroit Diesel a secure source of funding to redesign its engines to meet strict new emissions laws coming in 2007," Stark says. It costs between $500 million and $1 billion to develop a new diesel engine, he notes.
The deal also may help sell a line of smaller four- and six-cylinder diesel engines that Detroit Diesel developed for use in light trucks and sport-utilities, Stark says. Detroit Diesel first touted the engine family two years ago, but hasn't been able to find many takers, since most are already hooked up with competitors. It could also reignite rumors that DaimlerChrysler is looking to replace the popular Cummins diesel engine currently used in the Dodge Ram pickup.
DaimlerChrysler's deep pockets will also enable Detroit Diesel to expand production. Last year it sold 91,000 heavy duty engines.
"Freightliner President James Hebe hasn't forgotten that when the truck business was at a record high there was a shortage of powertrains from some makers, and Detroit Diesel was one of them," says Stark "They haven't had the money to expand. "
The move guarantees DaimlerChrysler a steady engine supply. "With the purchase of Detroit Diesel, DaimlerChrysler is going the route of Mack Trucks and vertically integrating is components supply," Stark observes. "What's next for them in this strategy is transmissions. "
Currently, the recently merged ArvinMeritor is DaimlerChrysler's largest supplier of heavy truck transmission. But a bid for that company is unlikely, Stark says.
"The balance sheets of Detroit Diesel and Western Star were spotless," Stark says. "There's wasn't a lot of long-term debt and the timing was riqht. "
COPYRIGHT 2000 Cahners Publishing Company
COPYRIGHT 2000 Gale Group