Agricultural machinery giant AGCO has announced it has signed a new deal with Deutz to supply engines for its Fendt tractors.
AGCO said it and Deutz has agreed a ‘new, long-term strategic partnership that establishes supply security, predictability and reliability for both companies and their customers.’
The partnership includes a supply agreement for updated 6.1 litre and 4.1 litre engines to be used in selected Fendt tractors. The partnership also includes development cooperation on future technologies.
In addition, Agco and Deutz will explore closer cooperation on engines or engine installation components below 150 hp.
“The coronavirus pandemic and its related impact on world commodity flows and global supply chains has reinforced the importance of strong, cooperative relationships with suppliers,” says Eric Hansotia, chairman, president and CEO of AGCO. “Deutz has been a trusted partner for years and we look forward to continuing to strengthen our relationship.”
“We are delighted about the trust that AGCO has placed in us,” adds Frank Hiller, CEO of Deutz, which is headquartered in Cologne, Germany. “AGCO has been one of our best customers for decades. We are extremely pleased that we are now contractually securing a common future in the long term.”
Speaking about Fendt sales Christoph Groblinghoff, chairman of the AGCO/Fendt management board, said an upturn in Europe’s tractor market will boost global sales for Fendt and expects 20,000 tractors will be produced this year.