John Deere Power Systems and Deutz have announced plans to jointly develop and source components for a low horsepower range engine up to 130kW.

In a joint statement the companies said that through working together, they will be able to close a gap in the market by developing an engine that provides customers additional value upon initial purchase while retaining "reliability, versatility and performance".
 
John Deere and Deutz say they bring different perspectives and capabilities to the table and, through this collaboration, they believe they can broaden their supply base and benefit from global scale – ultimately translating to increased market and customer value.

The co-development and co-sourcing scope includes engine hardware and design, from which each company will customise its product to meet customers’ specific needs through engine software and controls. Engine manufacturing and distribution will be done independently by John Deere and Deutz.
 
Pierre Guyot, senior vice-president, John Deere Power Systems, said, “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.”
 
Deutz CEO Frank Hiller added, “The fact that John Deere chose Deutz as a collaborator for this engine project underlines our strong position in off-road engine applications. This collaboration is an important step in establishing a business relationship between the two companies. We are very excited about the opportunity to join forces with an industry leader like John Deere, thereby creating value for our customers.”