AB Volvo has announced it has sold off its stake of approximately 25% in Deutz AG to institutional investors, and the shares are now in free float, increasing the overall liquidity of the engine manufacturing company. The sale of the investment has no impact on the business relationship between AB Volvo and Deutz, which has a long history.
Dr Frank Hiller (above), chairman of the Deutz board of management, said, “We will continue to work together closely with Volvo and will remain an important supplier, particularly in the construction equipment application segment. Following the sale of the investment, we can focus on raising our profile as an independent manufacturer of innovative drive systems.”
Five years ago, AB Volvo increased its stake in Deutz to 25% plus one share, making it the largest shareholder of the company at the time, but now has relinquished any hold over it.
Earlier this year, Deutz was involved in a joint research project with the University of Rostock, Germany, to build a natural gas engine-powered tractor, which went on display at the Organic Field Days show in Germany last month.
A Deutz TCD 3.6, a particularly compact four-cylinder inline engine with an output of 50kW to 90kW and a maximum torque of 480 Nm, was used for the project. Converting the engine to run on natural gas required several major component adaptations. The self-igniting diesel injectors first had to be replaced with a spark ignition system, and the pistons and cylinder head had to undergo mechanical adjustments. The converted engine proved to produce 24% fewer harmful emissions.
July 14, 2017