In August 2024, four years earlier than originally planned, DEUTZ took over the sales and service activities for selected Daimler Truck engines in the off-highway segment from Rolls-Royce Power Systems (RRPS). “DEUTZ can now offer its customers an additional innovative, high-quality engine range from 5 to 15 liters capacity in the off-highway segment that is well-regarded in the market,” explains Martin Laux, CFO of the EMEA region at DEUTZ. The customers taken over from RRPS benefit from the global availability of DEUTZ services and their exceptional quality and reliability.
Under the leadership of Martin Laux, a dedicated DEUTZ team completed the takeover – from signature to implementation – in a record time of just five months, a task that involved integrating 15 workstreams, four regions, three sites, and around 50 employees. The set-up, from personnel and IT to logistics and order processes, was fully up and running by August 1, 2024. In 2023, DEUTZ and Daimler Truck agreed an alliance to develop and market medium- and heavy-duty engines (MDEG and HDEP platforms) in the off-highway segment. It is scheduled to start in 2028. By taking over RRPS’s sales and service activities for selected Daimler Truck engines four yours earlier than planned, DEUTZ is now able to market the off-highway variants of these engines as well as older mtu Classic models (Daimler Truck engine series OM900 and OM460). Closing the deal is another milestone for DEUTZ in delivering the Dual+ strategy. It also expands our portfolio and strengthens our position in the market for medium- to heavy-duty engines. The new sales and service activities are expected to generate additional revenue of around €300 million a year and an EBIT margin in excess of the Group’s current margin.
“The successful takeover of the RRPS activities sends a clear signal to the market from DEUTZ and demonstrates that we will implement our consolidation strategy for internal combustion engines whenever it makes commercial sense to do so,” says Laux. “We hope that this will catch the attention of other potential partners."
