Daimler Truck is partnering with engine manufacturer Deutz as it moves away from combustion engines and towards e-mobility. The cooperation involves two transactions. Daimler Truck will acquire 4.19% of Deutz AG’s shares in exchange for Deutz’s access to Daimler Truck’s internal combustion engines.
The deals are worth a mid-double-digit million euro sum and include medium-duty engines for construction machinery and heavy-duty engines for agricultural machinery. Deutz will pay a cash sum for the heavy engine series and issue new shares for the medium-duty engine rights. The heavy-duty engines will continue to be produced by Daimler Truck, while the medium-duty engines will be manufactured by Deutz starting 2028.
“In line with our strategic focus on transportation that is carbon-neutral at local level, we announced last year that Daimler Truck would not be investing any more of its own money in the further development of its medium-duty engines for the Euro VII emissions standard,” explains Andreas Gorbach, Daimler Truck’s Chief Technology Officer.
See also: Volta Trucks completes customer driving evaluation of Volta Zero electric truck
In August 2021, Daimler Truck CEO, Gorbach, declared a plan to significantly decrease the CO2 emissions of the company’s truck fleet by 2030, surpassing current governmental limits. The goal is to have 40-60% of CO2-neutral battery or fuel cell trucks in sales within the EU by 2030. According to the EU’s 2019 regulations, manufacturers must decrease the CO2 emissions of new heavy commercial vehicles by 15% from 2025 and 30% from 2030 compared to 2019 levels. However, the EU Commission intends to enforce stricter CO2 standards next month.
Engine manufacturer, Deutz, has entered into a strategic partnership with Daimler Truck, which the company sees as an opportunity to expand its business with modern combustion engines. CEO, Sebastian C. Schulte, stated that the collaboration significantly enhances Deutz’s position in a consolidating market, especially in the heavy-duty and agriculture sectors where conventional combustion engines are still necessary and can be environmentally friendly through the use of synthetic fuels. Deutz also plans to continue to develop its climate-neutral product portfolio and grow its classic engine business.
At the recent Bauma construction machinery trade fair, Deutz, together with partners, showcased several electric construction machines, including an electric crawler crane, mini excavator, and battery-electric concrete pump. These machines, some of which are already available or soon to go into series production, demonstrate Deutz’s investment in e-mobility.
