Agco has announced it has signed a new deal with Deutz to supply engines for Fendt tractors.
Agco said it and Deutz have agreed to 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 co-operation on future technologies.
In addition, Agco and Deutz will explore closer co-operation on engines or engine installation components below 150 horsepower.
“The corona pandemic and its related impact on world commodity flows and global supply chains has reinforced the importance of strong, co-operative relationships with suppliers. Deutz has been a trusted partner for years and we look forward to continuing to strengthen our relationship,” said Eric Hansotia, president and chief executive officer of Agco.
Frank Hiller, CEO of Deutz, which is headquartered in Cologne, Germany, said Agco has been one of Deutz’s best customers for decades. “We are extremely pleased that we are now contractually securing a common future in the long term.”