AGCO and Deutz have agreed on a new, long term strategic partnership that will reportedly establish supply security, predictability and reliability for both companies and their customers.
It includes a supply agreement for updated 6.1-litre and 4.1-litre engines to be used in selected Fendt tractors, as well as development cooperation on future technologies. In addition to this, both AGCO and Deutz will explore closer cooperation on engines or engine installation components below 150hp.
Eric Hansotia, chairman, president and CEO of AGCO, said: “The Corona pandemic and its related impact on world commodity flows and global supply chains has reinforced the importance of strong, cooperative relationships with suppliers. Deutz has been a trusted partner for years and we look forward to continuing to strengthen our relationship.”
Frank Hiller, CEO of Deutz, added: “We are delighted about the trust that AGCO has placed in us. 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.”