– We have taken another important step in the further expansion of our business in the field of modern combustion engines by taking over sales and service from Rolls-Royce Power Systems. This is an essential element enabling Deutz to actively participate in market consolidation and constitutes another milestone in the implementation of our Dual+ strategy, says Deutz CEO, Dr. Sebastian C. Schulte.
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Claas machines with Rolls Royce engines
Daimler will be Deutz
As part of the completed transaction, Deutz takes over the distribution of the MTU Classic series and the MTU 1000 to 1500 engine series, which are based on three Daimler Truck engine platforms. These engines are used in many off-highway applications, mainly in the agricultural machinery and construction equipment sectors. The servicing of engines already in use is also part of the acquisition. After a transitional phase, from January 1, 2025, all service activities will be performed exclusively by authorized Deutz partners.
The acquisition comes on the heels of Deutz's alliance with Daimler Truck to develop and market medium- and heavy-duty engines (MDEG and HDEP platforms) in the off-highway segment. The alliance was concluded by both companies in 2023 and is scheduled to begin in 2028. The agreement for Deutz to take over Rolls-Royce sales and service means that Deutz will launch engine versions for agricultural and construction vehicles four years earlier than provided for in the alliance with Daimler Truck. In addition, Deutz will distribute the older MTU Classic model series (Daimler Truck OM900 and OM460 engine series).
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Deutz will produce engines for TAFE, at the TAFE factory
As a result of the transaction, Deutz expects additional annual revenues of approximately EUR 300 million and an EBIT margin higher than the current group margin. The purchase price for the engine portfolio is over double-digit millions of euros. Deutz's takeover of the sales and service activities will also result in the transfer of over 50 employees from the Rolls-Royce division to Deutz.
Deutz's Dual+ strategy
As part of the Dual+ strategy, Deutz is focusing on optimized combustion engines, green technologies that meet market needs, such as hydrogen-powered combustion engines. Moreover, the German company intends to expand the global expansion of its service activities.
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Deutz's combustion revolution – the history of Deutz-Fahr, part 1
Mercedes, Daimler, Maybach, Rolls Royce in one company
Probably not everyone reading the above article knows why Deutz bought Daimler Truck technology by purchasing Rolls Royce Power Systems. It looks quite complicated, but it can be explained.
The engine factory in Friedrichshafen was founded by Wilhelm Maybach and his son Karl Maybach in 1909 under the name Luftfahrzeug-Motorenbau GmbH. A few years later, the company was renamed Maybach-Motorenbau GmbH, which developed and produced diesel and gasoline engines for airships and then railway wagons. In the 1930s and 1940s, the company produced luxury cars, to which new Mercedes models refer.
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In the 1960s, the company was renamed MTU Friedrichshafen and continued to supply engines for a variety of interesting machines, including: for the Leopard 2 tank. In 1966, MTU merged with Mercedes-Benz Motorenbau.
And here we come to the 21st century and a series of takeovers that are difficult to comprehend. Thus, MTU Friedrichshafen remained a subsidiary of the then DaimlerChrysler until 2006, when it was sold and became part of Tognum Corporation. However, already in 2011, Rolls-Royce Holdings and Daimler AG took over Tognum. In 2014, Tognum changed its name to Rolls-Royce Power Systems, becoming a wholly owned subsidiary of Rolls-Royce Holdings.
Now everything has been taken over by Deutz, which is a bit of a giggle in history, because in the 19th century the Cologne company employed Gottlieb Daimler as the chief engineer managing the factory and Wilhelm Maybach as the chief designer of Deutz.
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Deutz's combustion revolution – the history of Deutz-Fahr, part 2