EQS-News

DEUTZ AG: DEUTZ enters into cooperation with Daimler Truck to develop and market medium- and heavy-duty engines

EQS-News: DEUTZ AG / Key word(s): Alliance DEUTZ AG: DEUTZ enters into cooperation with Daimler Truck to develop and market medium- and heavy-duty engines 30.01.2023 / 08:39 CET/CEST The issuer is solely responsible for the content of this announcement. DEUTZ takes an important step in further expanding its modern internal combustion engine business. Daimler Truck will take a 4.19 percent stake in DEUTZ AG, becoming a large shareholder. Today, DEUTZ AG (DEUTZ) and Daimler Truck AG (Daimler Truck) signed agreements giving DEUTZ access to Daimler engines by end of the decade. These include both medium-duty engines (Daimler Truck MDEG series), which are suitable for use in applications such as construction equipment, and heavy-duty engines (Daimler Truck HDEP series), which can be used to power heavy agricultural machinery, for example. As a result, DEUTZ will be able to attract new customer groups, save on development costs, expand its range of modern internal combustion engines, and thereby lay the foundations for further growth in this business. The cooperation between the two companies, which is supported by the stake Daimler Truck takes in DEUTZ, is focused on two areas: DEUTZ will acquire the on-highway IP to Daimler Truck’s medium-duty MDEG engines so that it can further develop them itself, including for use in off-highway applications such as agricultural machinery and construction equipment. DEUTZ will acquire license rights from Daimler Truck so that it can further develop the heavy-duty Daimler Truck HDEP series for use in off-highway applications. It will also distribute these engines independently. The cooperation provides for various production arrangements. The heavy-duty engines will continue to be built by Daimler Truck at the Mercedes-Benz plant in Mannheim and shipped to DEUTZ for final assembly, whereas the medium-duty engines will be completely produced at DEUTZ. The engine variants that will be marketed by DEUTZ are scheduled to go into production in 2028.