New Name For MTU Group Parent

Posted on July 12, 2006

In a move akin to when International Harvester became Navistar in 1986, the MTU Group has announced that it will operate under the new name of Tognum GmbH, effective immediately. Tognum will function as a strategic holding company for the companies with the globally established brands of MTU, Detroit Diesel, L'Orange, MDE, CFC Solutions and the Drive Shafts division. Despite their corporate links, the brands and individual companies will continue to operate independently in their markets, the company said.

"The new name for our group combines the tradition and strength of all the companies and brands and safeguards their independent market presence," explained Volker Heuer, Tognum CEO, who will continue to serve as president and CEO of MTU Friedrichshafen GmbH. The new holding structure for the various brands and companies of the MTU Group is a result of the sale of the Off-Highway division of DaimlerChrysler AG to the private equity fund EQT IV in March of this year.

Tognum, the company explained, is derived from the Germanic root (tog) and a Latin root (um) and is pronounced very similarly in the most widespread European languages. In its Germanic and old Scandinavian meaning, "tog" means "to pull with strength," while the Latin suffix "um" signifies an important object or monument, and is to be found in names such as Colosseum or Forum. In old languages of northern and central Europe, "um" also signified home or place of origin, the company said.

As a strategic holding company based in Friedrichshafen, Tognum GmbH will perform all corporate functions - including corporate strategy, finance, communication, planning and organization, and IT. "In the new company's management, the emphasis will be on lean structures, so that we can efficiently continue along the group's growth path with attractive products, and so that we can continue strengthening the core competencies of our brands," Heuer said.