Deutz and John Deere Power Systems announce engine collaboration. Does the news surprise you? It surprises us a bit, also because we had collected rumour about John Deere’s possible collaboration with other engine technology partners.
Deere and Deutz
An interesting chess game is being played on the global chessboard of industrial applications, where partnerships and M&A are redrawing the technological and commercial geography. The direction as far as John Deere is concerned is clear: if the bar has moved up with the 18-litre diesel engine presented at the Conexpo Las Vegas, under 4.5 litres there is only the 3-cylinder 2.9 litres displacement, mainly for captive applications. Under 130 kilowatts Deutz plays with the TCD 4.1, TCD 3.6, TCD 2.9 and TCD 2.2, as well as the two engines in collaboration with Kukje Machinery. Anyway, the news is a ‘news’ in every way. We report what the both companies say. “Deutz and John Deere Power Systems have announced plans to jointly develop and source components for a low horsepower range engine up to 130kW. Working together, the parties will be able to develop an engine that provides customers additional and exceptional value upon initial purchase while retaining the reliability, versatility, and performance they’ve come to expect from John Deere and Deutz engines.
Sharing skills and capabilities
John Deere and Deutz bring different perspectives and capabilities to the table and, through this collaboration, the two companies can broaden their supply base and benefit from global scale ultimately translating to increased customer value. The co-development and co-sourcing scope includes engine hardware and design, from which each company will customize its product to meet customers’ specific needs through engine software and controls. Engine manufacturing and distribution will be done independently by John Deere and Deutz”.
«John Deere and Deutz are both industry leaders in designing and manufacturing innovative power systems,» said Pierre Guyot, senior vice president, John Deere Power Systems. «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.»
Deutz AG CEO Frank Hiller stated, «The fact that John Deere chose Deutz as a collaborator for this engine project underlines our strong position in off-road engine applications.» He added, «This collaboration is an important step in establishing a business relationship between the two companies. We are very excited about the opportunity to join forces with an industry leader like John Deere thereby creating value for our customers.»