John Deere Power Systems and Deutz have announced plans to jointly develop and source components for a low-horsepower engine range up to 174hp (130kW).

Working together, the parties are intending to close a gap in the market by developing an engine that provides customers with a more cost-effective solution on initial purchase while retaining reliability.

Both firms will bring different perspectives and capabilities and through this collaboration, they are hoping to broaden their supply base and benefit from global scale. The co-development and co-sourcing scope includes engine hardware and design, from which each company will customise its product to meet specific customer needs through engine software and controls. Engine manufacturing and distribution will be done independently.

“Through combining our complementary knowledge sets and focus areas, we are excited to offer John Deere and Deutz customers a reliable, cost-effective engine option in the low-horsepower range,” said John Deere Power Systems senior vice-president Pierre Guyot.