Deutz is set to strengthen its position in the market for large capacity, high-power engines by taking over sales and service of Mercedes-Benz off-highway diesels from MTU, a business unit of Rolls-Royce Power Systems.

Daimler Truck builds these 5- to 16-litre OM-based Classic and newer 1000 to 1500-series engines to MTU’s off-highway specification for installation in agricultural and construction equipment with power outputs up to 640hp.

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This contract was due to expire in 2028 and the new agreement between Deutz and Rolls-Royce effectively pre-empts that ahead of a separate deal brokered in early 2023 for Deutz to co-operate with Daimler Truck on the future development and distribution of medium- and heavy-duty diesel engines for the off-highway sector.

Claas is one of MTU’s biggest customers, using the engines in Xerion tractors, most Lexion combines and Jaguar 800 forage harvesters.

SDF Group also uses them in Deutz-Fahr combines, and several manufacturers power their self-propelled forage, sugar beet and potato harvesters, self-propelled sprayers and application vehicles with the MTU engines.

Deutz has struggled to retain a foothold in this premium market, with MAN in particular gaining popularity, Cummins building a new relationship with Claas to power the Trion and Evion combines, and FPT Industrial retaining its big engine supply contracts for Case IH and New Holland tractors, combines and forage harvesters.

But the proposed transfer from MTU will give Deutz a strong market share and a €300m (£260m) a year revenue boost, leaving Rolls-Royce Power Systems to concentrate on engines for power generation, marine, military, rail and other sectors.