Volvo, Deutz explore joint next-gen engine development

  • 07-Apr-2012 11:29 EDT
Deutz TCD 4.1_6.1.jpg

Shown is the Deutz TCD 4.1/6.1 engine for agricultural machinery.

AB Volvo and Deutz AG have signed a nonbinding memorandum of understanding (MOU) to explore the potential to extend their long-term cooperation with joint development of next-generation medium-duty engines for off-highway applications. The MOU also aims at analyzing the conditions for establishing a Deutz majority-owned joint-venture company in China for the production of medium-duty off-highway engines. The production company would support the Volvo Group’s anticipated growth in the off-highway sector in Asia. Both companies must agree on the final terms and conditions in a binding contract before these plans are implemented.

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