Daimler Trucks and engine builder Deutz have announced a cooperation agreement which will see Daimler hive off its medium duty engine business to Deutz, allowing the global truck builder to focus on developing its carbon zero power trains. The tie-up, announced by Deutz on 30 January 2023, sees Daimler Truck take a 4.19% stake in the engine builder and also gives Deutz a license to further develop the Daimler heavy duty engine line-up for off-highway applications such as agriculture.


Daimler Truck’s Andreas Gorbach (left) and Sebastian Schulte, Deutz CEO announce strategic engine cooperation

The heavy-duty engines will continue to be built by Daimler Truck at the Mercedes-Benz plant in Mannheim and shipped to Deutz for final assembly, while medium-duty engines for both truck and bus applications and off-highway activities, will be completely produced at Deutz. The engine variants to be marketed by Deutz are scheduled to go into production in 2028.

“The co-operation with Daimler Truck will significantly improve our starting position in a consolidating market as we will gain access to technologically advanced engines and will be able to attract new customer groups at the same time,” says Deutz CEO Dr Sebastian Schulte. ”Heavy-duty applications and agriculture still require conventional powertrain systems based on internal combustion engines, and these can be made more environmentally friendly by running them on synthetic fuels. In the next few years, we will therefore not only enhance our climate-neutral product portfolio but also further expand our classic engine business.”

“We are delighted to be forming a partnership with the established and independent drive specialist DEUTZ. 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,” explained Dr Andreas Gorbach, member of the Board of Management of Daimler Truck, responsible for truck technology.