Rolls-Royce agreement in principle with Deutz AG to take over the lower power range engines business

Rolls-Royce and Deutz AG are in positive discussions for the sale of the off-highway engines business in the lower power range up to 480 kW to Deutz AG for a price in the high double-digit million euros. This relates to diesel engines and engine systems using Daimler technology, which are developed and manufactured by Daimler Truck AG for Rolls-Royce Power Systems to its specifications and used mainly in agricultural vehicles and construction machinery, not in rolling stock or in military vehicles.
Ancillary Equipment / December 18, 2023
By Mike Woof
Rolls Royce and Deutz AG are in discussions over the transfer of a diesel engine range

Rolls-Royce recently presented its strategy to become a  high-performing, competitive, resilient and growing business to investors. The Power Systems division will focus on the strategic growth areas of power generation, governmental, marine, and service, as well as the future field of battery energy storage systems.  

Tufan Erginbilgic, CEO of Rolls-Royce, said: "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." 

RR-Deutz
Rolls-Royce has agreed in principle with Deutz AG to take over the lower power range engines business. Pic: Rolls-Royce

Dr. Jörg Stratmann, CEO of Rolls-Royce's Power Systems, said: "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 complete, Rolls-Royce's Power Systems division will continue its activities in this business segment unchanged so that customer relationships, delivery, and service obligations remain unaffected. Following a final agreement, the closing - subject to regulatory approvals - is expected from mid-2024.

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