Deutz Ag has further consolidated the engine market after striking a deal with Rolls Royce Power Systems to take over sales and service operations for its off-highway engine division.

The deal entails engines from 5 to 16 litre and with a maximum power output of up to 644hp (480kW), including engines built under licence by Diamler Truck Ag for Rolls Royce Power Systems under its MTU brand.

This includes the MTU Classic OM900 and OM460 platforms as well as the MTU engine Series 1000-1500, found mainly in agricultural and construction machinery. Deutz will also take on service operations for engines already in service.

ADVERTISEMENT

While subject to final agreement, the double-digit million euro deal is expected to be completed and effective from mid-2024. As a result, Deutz forecasts the move to generate an additional €300 million in revenue per year.

Early in 2023, Deutz entered a partnership with Diamler Truck Ag to produce its off-highway medium and heavy duty MDEG and HDEP engine platforms, effective from 2028.