Why is Rolls-Royce selling a unit to Deutz?

Rolls-Royce is selling its business for so-called highway engines at a lower performance level to Deutz AG of Cologne. An agreement has basically been concluded for this purpose, according to a press release from Rolls-Royce Power Systems in Friedrichshafen.

Therefore, the purchase price of this unit is “in the high two million euro range”. A spokesman for Rolls-Royce Power Systems did not want to give more precise figures when asked by “Schwäbische Zeitung”.

The department generates around 300 million euros in sales

The sale, which is planned for mid-2024, involves units with an output of up to 480 kilowatts for commercial vehicles that are used off-road – for example combine harvesters, tractors, snow plows and wood harvesters or even crane trucks. . The diesel engines and engine systems are based on Daimler technology, which has been developed and manufactured by Daimler Truck AG for Rolls-Royce Power Systems according to its specifications, it is said.

The units are built at Daimler Trucks’ Mannheim engine plant. A well-known customer is the agricultural machinery manufacturer Claas. Railway and military vehicle engines are not affected by the sale.

According to a Rolls-Royce spokesman, the annual number of engines produced by the division is “in the low five-digit range”. He doesn’t want to calculate how big the sales are. However, a statement from Deutz indicates that the Cologne-based engine manufacturer expects sales of around 300 million euros for its new acquisition.

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According to reports, around 80 Power Systems employees are employed in this business area, 60 of them directly in Friedrichshafen – primarily in sales, the rest in Mannheim and Stuttgart. “Deutz wants to give these workers a takeover offer,” reports the spokesperson. It seems that 60 workers can stay in Friedrichshafen. It is reported from those close to both companies that Deutz would like to open a location on Lake Constance.

Selling part of the new strategy

“This is a clear example of the consistent implementation of our strategy. “We focus more on business areas where Rolls-Royce sees the greatest potential,” explains Rolls-Royce boss Tufan Erginbilgic. “In the future, we will focus more on high-performance systems in the area of ​​highway engines,” adds Jörg Stratmann, CEO of Rolls-Royce Power Systems.

The Rolls-Royce subsidiary in Friedrichshafen employs more than 9,500 people who, among other things, build ship engines, heavy land and rail vehicles and tanks.