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DEUTZ AG Annual Report 2021

Joining forces

DEUTZ is unlocking further growth potential through strategic partnerships with AGCO and John Deere Power Systems and through alliances with SDF and ASKO.

Michael Wellenzohn, member of the DEUTZ Board of Management responsible for sales, marketing and service, Eric Hansotia, Chairman, President and CEO of AGCO, Dr. Ing. Frank Hiller, former CEO of DEUTZ AG, Thorsten Dehner, Senior Vice President of Fendt & Valtra Global (from left).

DEUTZ is opening up new markets and reaching new customers by joining forces with major industry players. The trade publication Diesel Progress International described the alliance between John Deere Power Systems and DEUTZ as “one of the most interesting, and possibly most significant, engine agreements within recent memory”. In December 2020, the two specialists for innovative drive systems agreed to work together on a new engine in the power range up to 130 kW.

The fact that John Deere Power Systems chose DEUTZ as a collaborator for this engine project underlines DEUTZ’s strong position in the market for off-highway drive solutions. John Deere Power Systems and DEUTZ are collaborating on the development and procurement of components. The partners will then produce and distribute the engines separately.

The collaboration aims to increase reliability, versatility, and performance for customers while providing excellent value for money.

“AGCO has shown a lot of faith in us, and we are delighted about that. For decades, AGCO has been one of our best customers.”


Member of the Board of Management responsible for sales, marketing, and service

DEUTZ is continuing this strategic approach to growth through a long-term partnership with another major international player, AGCO. In July 2021, DEUTZ and the agricultural machinery manufacturer entered into an agreement for the supply of updated 6.1 liter and 4.1 liter engines for various Fendt tractors as well as a joint development project for the drive technologies of tomorrow. Eric Hansotia, Chairman, President, and CEO of AGCO, says: “DEUTZ has been a trusted partner for many years, and we are looking forward to making our relationship even stronger.”

A greener Europe with help from DEUTZ

DEUTZ has enjoyed close ties with the Italian agricultural machinery manufacturer SDF since the 1980s. In February 2021, the two companies strengthened their partnership by signing a new long-term contract, under which SDF will purchase various DEUTZ TCD engines that meet the EU Stage V emissions standard. In addition, the Italian company will be launching a new tractor series this year, which will also have a DEUTZ TCD drive. The agreement also aims to expand the service business of both companies.

In July 2021, DEUTZ signed a strategic supply agreement with a new customer, the ASKO Group. The agreement covers a broad range of engines, all compliant with the EU Stage V emissions standard, for the Turkish construction equipment and agricultural machinery manufacturer’s four main brands: MST, Başak Traktör, Starken, and ELS Lift. EU Stage V is the world’s most stringent emissions standard for engines used in mobile machinery. The number of engines that DEUTZ plans to deliver to the ASKO Group each year is expected to reach at least five figures, completely replacing the group’s existing supplier. DEUTZ will use the ASKO Group’s local presence to further expand its high-margin service business.

The agreements send a strong signal to the market that DEUTZ is an experienced and highly valued partner on joint development projects and that the Company benefits from economies of scale.

“The partnership with John Deere will benefit both companies. The added value generated by this alliance is already tangible.”