By Max Bernhard 
 

Daimler AG (DAI.XE) picked its Detroit, Michigan, diesel-engine plant as one of the sites to set up a battery-assembly operation for its electric trucks, the auto maker said Wednesday.

The plant--located in Redford, outside Detroit--is owned by Daimler's subsidiary Detroit Diesel Corporation. The company currently builds heavy-duty engines, axles and transmissions for Daimler's Freightliner trucks at the site.

A Daimler spokesperson said demand for the diesel trucks and components manufactured there remains strong and there aren't any immediate plans to roll back production of the existing operation.

In addition to the Detroit site, Daimler plans to assemble the batteries at its Mercedes-Benz site in Mannheim, Germany.

The German company said it would source battery-cell modules from Contemporary Amperex Technology Co. Ltd. (300750.SZ). The Chinese battery maker will supply lithium-ion battery cell modules for Daimler's electric trucks, which will be on the market from 2021, the company said.

--Kim Richters contributed to this article.

 

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

 

(END) Dow Jones Newswires

September 18, 2019 05:37 ET (09:37 GMT)

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