M-B ties up diesel deal...
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• Mercedes-Benz has joined up with Diesel Technology Corporation — a sister company to Detroit Diesel — to develop and manufacture new fuel injection systems for its truck engines.
The agreement, which gives Mercedes access to Detroit's experience with electronic engine control systems and unit injectors, is bound to fuel rumours that the German giant wants a larger stake in the American diesel engine maker.
The contract encompasses a long-range agreement for the exchange of technical knowledge and the development of "stateof-the-art electronic fuel injection systems that will allow Mercedes-Benz engines to meet future emissions requirements".
In particular the deal should help Mercedes to prepare for US emissions legislation scheduled from 1994 and 1998.
Production of the new fuel injection system is scheduled to begin in the mid-nineties.
Rumours of a possible takeover, which had been rife prior to the announcement of an agreement, had partly come about through Mercedes' previous relationship with Detroit, when Mercedes' American sub sidiary Freightliner used Det roit Diesel's Series 60 engines in its product line.
Mercedes' ownership of Detroit and its associated technology arm would provide Freightliner with priority on Series 60 engines, which are in short supply.
The M-B/DTC agreement raises a question mark over M-B's use of Bosch-fuel equipment.