John Deere Power Systems and Deutz will jointly develop and source components for a low-horsepower range engine up to 174 horsepower (130 kilowatts).
John Deere says the two “will be able to close a gap in the market” and will bring different perspectives and capabilities to the table.
The focus of the agreement will be co-development and co-sourcing of engine hardware and design. Each company will then customize these engines through software and controls to meet customer-specific needs, and then produce and distribute them independently.
“Through this collaboration, the two companies can broaden their supply base and benefit from global scale,” says the John Deere release.
“Through combining our complementary knowledge-sets and focus areas, we are excited to offer John Deere and Deutz customers a reliable, cost-effective engine option in the low-horsepower range,” says Pierre Guyot, senior vice president, John Deere Power Systems.
Frank Hiller, Deutz CEO, notes that Deere’s choice of Deutz “underlines our strong position in off-road engine applications.”