Detroit Diesel to be exclusive to Freightliner

July 2, 2003
The newly-announced restructuring of DaimlerChrysler's Commercial Vehicles Division will result in Detroit Diesel LLC's engines eventually becoming a Freightliner-exclusive product, Freightliner LLC president & CEO Rainer Schmueckle said today. During a press conference, Schmueckle said that as part of the restructuring, Detroit Diesel now falls under his leadership. Schmueckle added that with very
The newly-announced restructuring of DaimlerChrysler's Commercial Vehicles Division will result in Detroit Diesel LLC's engines eventually becoming a Freightliner-exclusive product, Freightliner LLC president & CEO Rainer Schmueckle said today.

During a press conference, Schmueckle said that as part of the restructuring, Detroit Diesel now falls under his leadership. Schmueckle added that with very few exceptions, Freightliner parts will no longer be provided to outside companies, unless the company is currently under contract to receive parts from Freightliner or Detroit Diesel.

Schmueckle said the decision to make Detroit Diesel engines exclusive to the Freightliner brand was basically a decision of its competitors. He noted that two of its competitors no longer use Detroit Diesel engines and that volumes are small for the one that does use them.

Detroit Diesel had fallen under DaimlerChrysler's Powersystems unit, but will now become part of its NAFTA Truck Business, which Schmueckle now heads. However, Schmueckle stressed that it will remain a separate company within the business and not a division of Freightliner.

Schmueckle said the announcement does not mean that Frieghtliner won't deploy third-party components for its own trucks in the U.S.

"We see customization as essential for our business, including a certain choice of components for our customers," Schmueckle remarked when asked about spec'ing options for its U.S. customers.

The restructuring will take effect January 1.

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Tim Parry

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