Portland Daimler plant awarded nearly $40 million in federal funds

Company to work on more fuel efficient vehicles

By Jim Redden

Pamplin Media Group, Jan 14, 2010, Updated Jan 14, 2010 (2 Reader comments)

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The Daimler Trucks plant in Portland will receive almost $40 million in federal funds to develop and demonstrate fuel saving technologies.

The award was part of a $187 million package of nine fuel-efficiency projects for heavy-duty trucks and passenger vehicles announced Monday by U.S. Energy Secretary Steven Chu. All of the awards will be matched dollar-for-dollar by the companies that received them, including Daimler, raising the Portland total to almost $80 million.

“Improving the efficiency of our vehicles is critical to reducing America’s dependence on foreign oil and addressing climate change,” Chu said in a statement. “Today’s awards will help demonstrate the potential benefits for long-haul trucks and passenger vehicles and will play an important role in building a more sustainable transportation system for the country.”

Daimler had considered closing the plant last year but decided to keep it open after receiving some military contracts. According to the U.S. Department of Energy, the $39,559,868 award will help fund work on “engine downsizing, electrification of auxiliary systems such as oil and water pumps, waste heat recovery, improved aerodynamics and hybridization.”

During a conference call after the announcement, the award was praised by Oregon Gov. Ted Kulongloski, Oregon U.S. Sen. Ron Wyden, Oregon U.S. Sen. Jeff Merkley and Oregon U.S. Rep. Earl Blumenauer, who represents much of Portland. All of them said the award and Daimler's matching funds represent a longterm commitment to keep the plant open in Portland.

"I came away with the impression Daimler is committed to staying in Portland," Kulongoski said.

All of the elected officials also said the award will produce multiple benefits, including creating new jobs, reducing American's dependence on foreign oil and cutting pollution,

"This is exactly the kind of boost we need for our economy," Wyden said.

In announcing the awards, the department said, “The funding includes more than $100 million from the American Recovery and Reinvestment Act, and with a private cost share of 50 percent, will support nearly $375 million in total research, development and demonstration projects across the country. The nine winners have stated their projects will create over 500 jobs, primarily researchers, engineers, and managers who will develop these new technologies. By 2015, the projects expect to create over 6,000 jobs – many in manufacturing and assembly.”

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