Rolls-Royce and
Deutz AG are holding discussions regarding the sale of the former’s off-highway engines business in the lower power range (up to 480kW) to Deutz AG. This relates to diesel engines and engine systems that use Daimler technology and are developed and manufactured by Daimler Truck AG for Rolls-Royce Power Systems. These products are made to Rolls-Royce’s specifications and used mainly in agricultural vehicles and construction machinery; rolling stock and military vehicles are not included.
Tufan Erginbilgic, Rolls-Royce plc’s CEO, said: “This is a clear illustration of our strategy of 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.”
Dr Jörg Stratmann, Rolls-Royce’s Power Systems CEO, added: “As we evolve our strategy, we are 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 transfer of the business is complete, Rolls-Royce’s Power Systems division will continue its activities in this business segment unchanged in such a way that customer relationships, delivery and service obligations remain unaffected. Following a final agreement, the closing — subject to regulatory approvals — is expected from mid-2024.