Rolls-Royce and Deutz AG are engaged in discussions regarding the sale of Rolls-Royce’s off-highway engines business in the lower power range, up to 480 kW, to Deutz AG.
The proposed sale, valued in the high double-digit million Euros, encompasses diesel engines and engine systems using Daimler technology.
These products, developed and manufactured by Daimler Truck AG for Rolls-Royce Power Systems, are primarily used in agricultural vehicles and construction machinery,
Tufan Erginbilgic, CEO of Rolls-Royce plc, remarked on this development, stating, “This is a clear illustration of our strategy in action. Becoming more focused on the markets where we know Rolls-Royce can win. Power Systems is an integral part of our organisation with a strong brand and real advantage in power generation, governmental, and marine end-markets, where we see the strongest demand and an opportunity for better returns from our power-dense and reliable solutions.”
Dr. Jörg Stratmann, CEO of Rolls-Royce’s Power Systems, further explained the strategic shift, “As we evolve our strategy, we are also constantly analysing our product portfolio. As a result, we will be concentrating largely on higher-powered systems in the off-highway engine sector, primarily from our in-house production. We have therefore decided to transfer our successful lower-power-range engines business, which uses Daimler technology, to a partner.”
Until the business transfer is finalised, Rolls-Royce’s Power Systems division will maintain its operations in this segment, ensuring uninterrupted customer relationships and service obligations. The closure of the deal, subject to regulatory approvals, is anticipated from mid-2024.
Rolls-Royce Power Systems currently holds exclusive rights to the global distribution of off-highway engines using Daimler technology, with the contract set to expire in April 2028.
The products under negotiation include the Series 1000, 1100, 1300, and 1500 engines, along with the Classic Series OM900 and OM460, in the 75 to 480 kW power range. It is specified that the deal does not involve engines used in rail or military vehicle applications. The number of employees involved in this part of the business is in the double-digit figures.
Am I being a bit dim ? The main headline says one thing yet the sub headline says another.
who’s actually taking over who ?
Agreed. ABCRodney, please elucidate.
Headline is wrong(error). RR is selling not buying.
The erroneous headline is what you get if you use Text Generation Software, unchecked. Of course it could be human error.
Thought it was to good to be true when seen headline 🙄
Why would RR want Deutz AG, it doesn’t really do mass production / low profit products ?
Yep so one has boobed RR is selling not buying. I’ll post the original company press announcement separately as it will go for approval. For more detail just Google RR press announcements. When people think of RR they visualise Aero engines (including business jets and the Former Alison Turbine in US). But what they don’t see is the rest of the products or its subsidiaries. RR builds Marine MT such as MT30, Marine Spey, Olympus etc, Nuclear reactors for RN Submarines and a separate business developing the new SMR for civilian use. And then we get to the Oily Bit,… Read more »
Excellent response, thanks for all the detail too…. i wonder how long the headline stays un altered ?
4.5 hours 🥳
Nice one Rodney.
Everybody but the author seems to know he’s made an error. Rolls-Royce are selling
I think he just did.
Selling. Looking at market projections (diesels are dubious for pollution and may catch increasing legislation in the future). Get out while the price is right. The next phase will be to look for expanding technologies to invest into. Large companies become complacent, lack originality or agility (too many bosses phenomenon). Break up, reform and advance.
Oh look the headline has changed 🤣 The underlying reasons are concentrate on core activities and invest in research Carbon Friendly Technology. RR are already way ahead of the curve on emerging technology. One things folks don’t realise is that Diesels were originally designed to run on Non Fossil Oils yep Vegetable Oil. I can’t see the demise of Marine Diesels yet, but a combination of Hydrogen or LNG / LPG engines plus solar and wind will make things far greener. Fletner Roters could be big business. Small Modular Nuclear Reactors, Hybrid GT, and the latest Gas Turbines generate large… Read more »
Well, Rodders, you have settled that! Now I have more homework to do. Businesses like RR need to make the scenery not just enjoy the view. Thanks for your many insights on the blog.
LOL…… Headline now changed….. !!!!!😂
One of the things I like about UKDJ is it’s pretty interactive and they respond to suggestions and they all try to non partisan and objective.
Unlike mainstream media they don’t try to dramatise or hype a headline they just report Defence News.
These low power engines are already manufactured by Daimler Benz for RR, to fill gaps in their range, so selling off this part of the business so they are selling the sales and support business for something they don’t make. Makes sense really.