Next! Deutz & Liebherr To Sign Engine Alliance

Deutz AG and Liebherr Machines Bulle S.A. announced they have agreed on the key aspects of a strategic diesel engine alliance between the two companies. The pending agreement calls for Liebherr to grant Deutz worldwide sales and service rights for diesel engines covering an output range of 268 to 938 hp (200 to 700 kW) for a variety of off-highway applications.

It was a busy week for Liebherr, which earlier announced an engine development alliance with Kohler for diesel engines 27L to 103L for use in Kohler power generation systems (see article below).

In this latest deal, the engines manufactured by Liebherr will be available to Deutz for delivery in 2019, not coincidentally the first year of the Stage 5 diesel emissions regulations in Europe.  The engines are being developed for Stage 5, as well as US Tier 4, China IV and EU Stage 3a emissions standards, Deutz said.

Specifically, Michael Wellenzohn, member of the Deutz board of management with responsibility for sales, service and marketing, said construction equipment, especially excavators and wheel loaders, are seen as key target applications for the new engines.  He also listed agricultural machines, specifically harvesters, material handling, and oil and gas applications in drilling and fracking uses as possible applications.

Deutz said it plans to sell the engines worldwide under its own brand, including via its global network of dealers, which will also handle sales and service for the Deutz-branded models. The agreement is apparently not exclusive, as Liebherr will also be able to sell these engines under its own brand name.

The agreement seems to fill a need for Deutz, expanding the top end of its current range above the current TCD 12.0/16.0L vee-engine models, with outputs now up to 845 hp (630 kW) from 700 hp (520 kW).  It also fills a slot for Deutz between its current 7.8L and 12.0L models.

Additional plans also call for Deutz to receive exclusive rights for the production of a Liebherr 9 liter engine in China.

Furthermore, Deutz said an expansion in the use of its engines in Liebherr machines up to 150kW is anticipated.  Deutz currently sells its 3.6L diesel to Liebherr for use in telehandlers and mobile and crawler excavators.

With the initial agreement between the two companies in place, the companies say they now intend to draw up and sign contracts setting out the full details of this new strategic alliance.

More details on this agreement will be featured in an upcoming issue of Diesel Progress North American and Diesel Progress International.