Deutz and Volvo look to extend co-operation

Companies sign non-binding memorandum of understanding on development of long-term co-operation

DEUTZ AG have signed a non-binding memorandum of understanding with AB Volvo with the intention to explore the potential to extend their long-term co-operation with a joint development of the next generation of medium-duty engines for non-road applications.

The memorandum of understanding also aims to analyse the conditions for establishing a Deutz majority-owned joint-venture company in China for the production of medium-duty engines for non-road applications.

The production company is intended to provide support for the Volvo Group’s anticipated growth in non-road applications in Asia.

Any implementation of the memorandum will require both companies to agree on the final terms and conditions in a binding contract.