Deutz magazine

Ettore Bugatti constructs the DEUTZ automobile in Cologne. DEUTZ presents its first diesel tractor with series maturity. Takeover of the commercial vehicle manufacturer C. D. Magirus AG in Ulm.

DEUTZINSIDEThe magazine of DEUTZ AG Edition 1 I 2014

150th anniversary special edition

Faith in progressArnold Langen, grandson of DEUTZ co-founder Eugen Langen talks with DEUTZ INSIDE

Today‘s mobile worldSociety in continuous mobile mode. An essay about engine philosophy

CONTENTS

2 DEUTZINSIDE 1 I 2014

OUR ANNIVERSARY – IN THE NEWS“An idea that really took off”An interview with the Board of Management of DEUTZ AG

NEWS

DEUTZ notifications and information from all around DEUTZ ..............p. 4

OUR ANNIVERSARY – IN THE NEWS

“An idea that really took off” An interview with the Board of Management of DEUTZ AG ..........p. 6

OUR ANNIVERSARY – EXCEPTIONAL ASPECTS

In the spotlight of theHall of FameFootball, DIN-Norm and the Cologne Innovation Prize: Aspects and anecdotes from 150 years DEUTZ .........................p. 8

OUR ANNIVERSARY – A JOURNEY BACK IN TIME

About steam engines, factoriesand the engine of the futureTravelling back in time to the year 1864 ...............................p. 10


“Working with combustion engines today means having comprehensive expertise in the system as a whole”Interview with the engine expert Dr Günter Fraidl .................p. 12

OUR ANNIVERSARY – ADVERTISING

To the marketing beatThe art of advertising and marketing: DEUTZ advertising from the first few decades of the company ..............p. 16

OUR ANNIVERSARY – A TIMELINE

Milestones, inventions, highlightsThe history of 150 years DEUTZ .........................................p.18

OUR ANNIVERSARY – A PORTRAIT

Faith in progressArnold Langen, grandson of DEUTZ co-founder Eugen Langen talks with DEUTZ INSIDE ..............p. 20

OUR ANNIVERSARY – AN ESSAY

Today‘s mobile worldSociety in continuous mobile mode. An essay about engine philosophy ..............p. 22

OUR ANNIVERSARY – PERFORMANCE

On land, in the water and in the air Impressive milestones all around the globe – Performed by DEUTZ ..................p. 24

p. 6

p. 20

p. 22

IMPRINTDEUTZ INSIDE Edition 1/2014 Published by: DEUTZ AG, Ottostraße 1, 51149 Cologne (Porz-Eil) Person responsible: Janina Decker, Public Relations Director: Janina Decker, Phone: +49 (0)221 822 24 93, Fax: +49 (0)221 822 15 24 93, E-Mail: [email protected] team: Janina Decker (DEUTZ AG), Jan Dimog/Markus Fischer (Diamond media GmbH) Design: Diamond media GmbH, Miria de Vogt, Cheryl JuhaszPrinting: Druckerei Engelhardt GmbHPicture credits: Janina Decker, DEUTZ AG, fotolia.com, Picture-Alliance/KEYSTONE, picture-alliance/ dpa, shutterstock.com

OUR ANNIVERSARY – PARTNERSHIP

Production capacities, not only in Europe International joint ventures of the DEUTZ AG ..........................p. 28

OUR ANNIVERSARY – EMPLOYEES

A New Home in the Land of Smiles Ertugrul Aras moved to the Joint Venture DEUTZ (Dalian) Engine Co., Ltd. in 2013. ...............p. 29

OUR ANNIVERSARY – IN PICTURES

Turbulent History Photographs and famous people from 150 years of DEUTZ .............p. 30

OUR ANNIVERSARY – OUR FUTURE

First place, more efficient, more successful Strategic programme outline through 2020 – an overview ..........p. 32

IN BRIEF

Did you know that ... … 90 years ago the employees of the DEUTZ AG engine plant were paying 280,000 German Marks for one litre of milk? .............p. 34

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EDITORIAL

You can find DEUTZ INSIDE online here.

Dear readers,

You probably noticed that we selected one of our corporate principles as the key note for each one of our last four issues of DEUTZ INSIDE. So far we talked about responsibility, inno-vation, quality and trust. We have kept the fifth principle – success – for the present edi-tion for good reason, because we want to tell you a very special success story. Our own! DEUTZ AG, the oldest engine manufacturer in the world just turned 150 years old.

In 1864 the merchant Nicolaus August Otto and the engineer Eugen Langen, both from Cologne, decided to bring a fascinating idea to life. Their vision was a machine that could drive vehicles and which could be used in manufacturing facilities. Together, the two visionaries founded the world's first engine plant in the Servasgasse, not at all far from the Cologne Cathedral. When Otto and Langen laid the foundation of their small company "N.A. Otto & Cie.“ for what was to become the DEUTZ AG of today, they could not possibly fathom that they would succeed in setting the stage for the motori-sation of the entire world, and literally begin to set it into motion. During the course of its long history, the DEUTZ AG has continued to bring forth innovative and pioneering achievements over and over again.

And today? It stands to reason then, that we are, against the background of our own history, feeling historically responsible to be a driving force for innovation. Because the innovative companies are the ones setting the technological standards of the future and who drive progress forward. The spirit of innovation means constant renewal rather than being content with standstill. This is also the reason for our continuous investment into developing efficiency and environmental friendliness in our engines. No matter whether they are natural fuel engines, hybrid or start-stop automatic systems; if they are de-signed for use in construction machines, ships or agricultural machinery – we are busy developing viable and sustainable solutions, together with our customers and suppliers, for the requirements of the future. That is not just a mere claim, since we have already developed these solutions.

The present demands respect for the past, but most of all, it leads us to take respon-sibility for the future. For this reason we have selected "The Origin of HighTech" for our anniversary motto. 150 years of corporate history are more than just the living past. They are what has brought us this far, and what is shaping our actions for the future. You will find many of the milestones which formed the DEUTZ company during its 150 year history in this edition of DEUTZ INSIDE. We recommend a visit to our anniversary website www.150jahredeutz.com to all who would like to learn more.

We invite you to: Join us on a journey through history and into the future; to immerse yourself into 150 years of fascination with technology! We want to wish you particularly exciting reading this time.

Kind regardsYour

Dr Helmut Leube Dr Margarete Haase Michael Wellenzohn

150 Years of DEUTZ – The Press Conference

The 31st day of March is a special day in the history of DEUTZ. It was the day of the official start-up of the first engine factory in the world, the "N.A.Otto & Cie." Company, founded by Nicolaus August Otto and Eugen Langen. For that reason the company decided to use that partic-ular date as the official start date for the anniversary events. The festivities start-ed with a press conference honouring the anniversary on that very day at the DEUTZ Technikum.

The participating journalists were presented with the book "Driving Innovation – Four Strokes Power the World", which was published on that special date. After a short introduction to the moving history by the DEUTZ CEO Dr Helmut Leube, Dr Damian van Melis, Managing Director of the Cologne Greven Verlag em-phasised how virtually inextricably linked the DEUTZ history is to the history of Cologne itself and therefore a remarkable history not only for the people in Cologne. The guests were then also able to take a first on-site look at the new DEUTZ anniversary website and get information on the year's events, including the ceremony at DEUTZ on May 9, 2014. Finally the DEUTZ Executive Board joined forces to put the four stroke engine into motion and thereby symbolically started the anniversary activities.

In remembrance of the DEUTZ founderNicolaus August Otto In the anniversary year 2014.


NEWS

150 Years of DEUTZ – The Website

150 years of DEUTZ – Stories of famous minds, impressive inventions and forma-tive moments. DEUTZ compiled all of this on a specially constructed website, which was published just in time for its anniversary on 31 March. Enjoy the in-novative One-Page-design to go on a journey into the past, send greeting cards from times long past, listen to the sound of the Engine No. 1, which started everything back in 1867 or use the guest book to tell us about the person-al DEUTZ moment in your life. Join the world's oldest engine manufacturer in looking back on 150 eventful years at www.150jahredeutz.com!

NEWS

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05.05.14 to 05.08.14 Offshore Technology Conference Oil/Gas/Marine Houston U.S.A. 05.29.14 to 06.04.14 Intern. Trade Fair Algiers (FIA) Off-highway mobile Algiers Algeria06.03.14 to 06.07.14 CTT Off-highway mobile Moscow Russia

Date Event Segment Location Country

Trade Fairs, May to July 2014

DEUTZ at the 2014 Educational Trade Fair in Ulm

The DEUTZ plant in Ulm was present at the educational trade fair in Ulm from February 20 to 22nd, 2014, where for the seventh year in a row the regional companies introduced their graduat-ing students. Trainees and trainers of the Ulm plant were at a booth togeth-er with Südwestmetall. Deutz trainees were available as a direct contact for any information requested by the stu-dents.

The questions of interested students ranged from training content to dura-tion of training, up to the future pros-pects of employment with the compa-ny. The highlight of the booth was an electrically operated cutaway model section of the BF4L912 engine, where the injection process could be ob-served. This was the main attraction for many local DEUTZ fans and users (especially from the field of agricultural engineering). Our young visitors were challenged with building a Lego engine in a specified period of time.

His “low-pressure condensation steam engine,” which he patented in 1769, consumed only a quarter of the coal compared to previous machines. Watt’s invention became the driving force behind the Industrial Revolution. In addition to new businesses and industries, the steam engine was primarily implemented in vehicles. The steamboat, which was invented by Frenchman Jouffroy d’Abbans in 1783, revolutionized maritime travel; Robert Fulton was able to establish the first steamboat line between New York City and Albany as early as 1807. With the inauguration of the world’s first railroad line between the English cities of Stockton and Darlington in 1825, Watt’s invention also conquered the rails.

Elements of the steam engine, such as the cylinders or the crankshaft drive, were later in-cluded in combustion engines – but a few intermediary steps were required before that happened. The most important issue facing the inventors of the enormous, expensive steam engine was how to make it usable for smaller companies. The engineers quickly re-alized that heat would need to be produced directly within the cylinder in order to avoid the need for the labor-intensive water vapor heating process. However, to do so, they needed a new fuel – which became available in 1801 with the introduction of Frenchman Philippe Le Bon d’Humbersin’s process for manufacturing coal gas. Coal gas could be burned to produce a vibrant flame without leaving any residue behind, which is why it was used in street lamps until the second half of the 20th century. This fuel, which was obtained from bituminous coal, seemed tailor-made for mixing with oxygen and igniting within a cylinder. During the same year (1801), the French scientist presented his first coal gas engine. Other inventors, such as Swiss scientist François Isaac de Rivaz, also emulated the idea of a combustion engine. In 1812/13, Rivaz constructed an engine that he was even able to install in a vehicle. However, the 800-kilogram monstrosity, whose wheels were two meters in diameter, had an extremely limited range. Additionally, every individual engine ignition had to be manually triggered by the driver. In that sense, it was hardly functional or practical.

It wasn’t until a few decades later that the world’s first operational combustion engine would make history.

The “Clermont” on the Hudson River: Robert Fulton launched the first steamboat line between New York City and Albany in 1807.

First use of a steam engine in a coal mine, Liverpool 1792.

12 | 13

150 Years of DEUTZ – The Book

Cologne, in the year 1864: In a small workshop in the Servasgasse in the city of Cologne, the merchant Nicolaus August Otto and the engineer Eugen Langen are puzzling over an idea that would end up changing the world. Their vision: To cre-ate a machine that could drive vehicles and which could also be used in manu-facturing operations. But they would end up succeeding in much more than that. Because of the development of the four-stoke engine in 1876 Otto from Cologne went on to change the world and the lives of the people in it long-term. That small workshop turned into an enterprise which has been holding a leading position in the field of engine technology worldwide. DEUTZ AG, as an independent producer of diesel engines, is setting standards and is shaping the future.

The company, in collaboration with the Hamburg Institute for Corporate and Economic History (IFW) and the Cologne Greven Verlag, published a 200 page book commemo-rating the 150th anniversary of the DEUTZ AG.

Packed with many pictures and illustrations, the 200 page book "Driving Innovation. Four Strokes Power the World." displays the long and impressive history of the engine manufacturer from Cologne. They could be considered the "cradle of engine design", as the shop from Cologne not only brought forth revolutionary innovations, but has been represented and decisively shaped by famous personalities such as Gottlieb Daimler, Wilhelm Maybach and Ettore Bugatti. The operation gained global fame through its legendary air-cooled engines and commercial vehicles division – marketed under the brand MAGIRUS-DEUTZ. These and many other stories, are presented in the book "Driving Innovation. Four Strokes Power the World.", which is available in German book stores or directly from the publisher, Greven Verlag.

For more information, see our anniversary homepage www.150jahredeutz.com



”An idea that really took off“Our interview with the Board of Management of DEUTZ AG

150 Years of DEUTZ. It makes one want to look back, but also evaluate the present and then look forward. The DEUTZ Board of Management does just that by sharing their personal insights in this conversation.

7

OUR ANNIVERSARY

DEUTZ INSIDE: Are you personally still fascinated by the ideas of Nicolaus August Otto, even now, 150 years after he founded his engine factory?

Dr Helmut Leube: Absolutely! The results of his ideas, which are much more far reaching and beyond the scope of the company he founded, just speak for themselves: The Otto engine has undergone an incredible transformation in these 150 years. And thousands of engineers all over the world are succeed-ing daily in making it just a little better.

DEUTZ INSIDE: DEUTZ has established itself as a supplier of engines in the pre-mium segments of the industry. Whoev-er holds this claim must not ever let up. What current technology trends did you want to focus on in particularly in this anniversary year?

Dr Helmut Leube: 2014 will be marked by the market launch of the Tier-4 tech-nology and the large scale ramp-up of our TCD 2.9 and 3.6 engines. Plus the framework conditions for the next emission level Tier-5 are also being laid down at the same time.

DEUTZ INSIDE: Fur-thermore, the DEUTZ AG company is involved in the financial and capital markets, which are some-times full of uncertainties and challenges. Are you looking forward with con-fidence and expecting continued success during this anniversary year?

Dr Margarete Haase: What really counts are the operative and financial performance of the company, as well as our customer and employee satisfaction.

As long as we achieve our goals, we can also stay competitive on the capital mar-kets. Incidentally, trust and confidence in our future is easily detectable by the per-formance of our stocks.

DEUTZ INSIDE: What steps is DEUTZ currently taking, to not only be the supplier of choice for technology users, but to also be more attractive to the long-term investors?

Dr Margarete Haase: Our positioning as an independent engine manufacturer, who has to remain attractive to its share-holders, requires a medium-term goal for returns on investment of at least 10 %. In order to reach that we recognise the gradual increase of our gross margins as our greatest challenge. These include, among others, market penetration, price enforcement, variant management, smart engine development, an ambitious purchasing team and efficiency in pro-duction.

DEUTZ INSIDE: A 150 year anniversa-ry is a good reason to congratulate even one's own company: How has DEUTZ

succeeded in retaining so many long-standing, loyal and convinced custom-ers?

Michael Wellenzohn: DEUTZ looks back on one and a half centuries of history, characterised by highs and lows. We were

able to create long term customer loyalty throughout this entire time with our tech-nical competence, the performance of our products and our customers service. In this way we created close customer relationships, some reaching back as far as 80 years.

DEUTZ INSIDE: DEUTZ has been a household name, with its long tradition, especially in Germany. How can the company use this base to strengthen and expand its successes internationally as well?

Michael Wellenzohn: The premium image of our brand is based on our engineering, reliability and quality. This requirement must also be maintained under changing market conditions and increasingly more complex product re-quirements. It is the only way to con-tinue to be successful, even in a global market.

DEUTZ INSIDE: Why, in this year 2014, can our employees still proudly state that they are "working for DEUTZ"?

Dr Margarete Haase: Because the company displays a first-class market presence, technological leadership and financial stability. Therefore everyone in-volved certainly has a right to be proud.

DEUTZ INSIDE: Now a look into the future from the perspective of our an-niversary year. Are customer demands changing? And how does DEUTZ handle the incorporation of these trends?

Michael Wellenzohn: The increasing complexity of engine controls and emis-sion reduction systems requires a much closer integration of sales and service. We need to meet this complexity with our service network in the field, to support our OEM customers, providing optimal ser-vice, and thus placing our engines as an attractive product with the end customer. In turn this provides the OEM-customers with a demand for our engines, which can be met by our distributors with the appropriate consultation and customised service concepts. So the circle is com-plete. These requirements will certainly be met by the new structure of our sales and service concepts.

DEUTZ INSIDE: What would be your wish for the workforce, and for the "birth-day child", the DEUTZ AG for its 150th anniversary?

Dr Helmut Leube: That's easy: That our product will continue to meet the expec-tations of our customers and convince them to give us preference over the com-petition.

”The company displays a first-class market

presence, technological leadership and financial

stability. Therefore every-one involved certainly has

a right to be proud.“


In the spotlight

533 Steps to the top of the 157.22 me-ters high tower, almost 8,000 square meters covered area, six million visitors a year, and being a recognised World Her-itage site since 1996. The Cologne Ca-thedral, our landmark of this Rhineland metropolis, is a building of superlatives. When this "eternal construction site" was finally completed in 1880, at least for the time being, after more than 632 years, wonderful arc lamps illuminated the magnificent Gothic cathedral. Sev-eral four-horsepower, two-cylinder gas engines were used to put the highest building in the world at that time into the right light – and they were produced by the Deutz gas engine plant.

A four-stroke engine in the world's first automobile

Carl Benz succeeded on July 3, 1886 in the incomprehensible with his three-wheeled "Velociped“: He designed a functional vehicle with a petrol engine, and thereby created the predecessor of all of today's automobiles. The model for the Benz engine design was the four-stroke engine which had been patented by Otto earlier. Only through his inven-tion was Carl Benz able to build a literal "dwarf in weight and titan in power".

Like father, like son

Not only Nicolaus August Otto gathered revolutionary achievements in the field of engine design, but also his son Gustav, born in 1883, turned out to be a great engineer. In 1909 the enthusiastic pilot and aircraft designer founded his own flying machines factory in Munich and developed several double-decker planes there. The company had quite high sales figures in the early days, however, during WWI it got into financial difficulties and was bought out in 1916 by "Bayer. Flug-zeug-Werk AG“ (the later BMW).

Peter Klöckner: The industrial magnateOn the Supervisory Board since 1906,

Chairman of the Board since 1924: For 34 years the industrial magnate Peter Klöckner was a great influence on the development of DEUTZ until his death in 1940. Born in Duisburg in 1863, he founded, together with his brother Florian, an iron and steel trading compa-ny in the Ruhr city in 1906. Through a number of mine, mill, and industrial plant acquisitions the Klöckner Werke were founded in 1923, which then merged in 1938 with DEUTZ to make up the KLÖCKNER-HUMBOLDT-DEUTZ AG.

Compensation for forced labour

The DEUTZ AG was one of the first com-panies to contribute to the compensa-

OUR ANNIVERSARY – EXCEPTIONAL ASPECTS

What does the DEUTZ AG have in common with football, DIN standards and the Cologne Innovation Prize? Actually, quite a lot! The following are some of the extraordinary aspects, anecdotes and associations of the 150-year history in an overview.

In the spotlight of the Hall of Fame

9

OUR ANNIVERSARY

tion of former forced labourers and has thus taken responsibility for that time. In 1999 DEUTZ founded, together with 15 other companies and the federal govern-ment, the "German Industry Foundation Initiative". 4.4 billion Euros were paid out as compensation until 2007. At that time the retribution programme was consid-ered complete. The succession founda-tion "Remembrance, Responsibility and Future" (EVZ) continues to advocate to this day for human rights and the victims of National Socialism. Since its inception the EVZ has funded 2689 projects with a total budget of 71.1 million Euros.

The Otto (gasoline) engine becomes the DIN standard

There is no greater award than to be included as a standard into the com-mon spoken language. In 1946, the German Institute for Standardisation (DIN) determined with DIN standard 1940 that, effective immediately, based on the name Nicolaus August Otto, all combustion engines whose combus-tion started by means of time-con-trolled spark ignition, had to be called “Ottomotor” or "Otto engines". Twelve years later the definition was amend-ed by the addition of "combustion of a compressed fuel-air mixture". Otto's invention was honoured again in 1952

with a commemorative stamp issued by the Deutsche Bundespost.

One victory after another

As a contribution to the "Miracle of Bern" – MAGIRUS-DEUTZ sponsored the team bus for the German Elev-en in the year of the Football World Cup in 1954. The comfortable luxury bus, equipped with the latest devel-opments in technology, transported the players, coaches and officials on tours, training and pre-game sites – all the way to Bern – and the world cup title. This proven quality assured the company also the exclusive use of MAGIRUS-DEUTZ buses in the IX. Winter Olympics in 1964 in Innsbruck.

"The star of the South"

MAGIRUS-DEUTZ was part of the Ger-man football championship team twice, with the team of FC Bayern München. From 1978 to 1984 MAGIRUS-DEUTZ sponsored the jerseys of the Bavarian super champions. In the 1979/1980 sea-son and again in 1980/81 football icons like Karl-Heinz Rummenigge, Paul Breit-ner or Georg „Katsche“ Schwarzenbeck kicked their way to the top of the charts with the Magirus logo on their chest.

Let there be honour where honour is due

In 1996 the time had come, after more than 100 years: Nicolaus August Otto was inducted into the Automotive Hall of Fame in the US city of Dearborn, MI, just a little south-west of the motor city Detroit, to be honoured for his invention of the engine that carries his name. That puts his inventor spirit into great com-pany. Next to Otto, the Hall of Fame honours several other great names like Rudolf Diesel, Carl Benz or Henry Ford.

The Nicolaus August Otto Price

Investing into the Future: The innovation prize was conferred for the first time in 1998 and has been supported by the Cologne Deutz AG since 2008 under its new name – "The City of Cologne Nicolaus August Otto Prize for Innova-tion" in honour of the inventor. The city and the engine manufacturer are boost-ing the creative spirit of some creative Cologne heads with a total prize incentive of 30,000 Euros in support of their extraordinary and pioneering ideas. Other spe-cial prizes are awarded as well: In 2008 a price was awarded for an environ-mentally friendly flood protection idea – the winner was an eleven year old boy.

In the spotlight


Germany, in the year 1864. Germany? Germany didn't even exist then. Be-tween the borders of Denmark in the north, Switzerland in the south, France in the west, and Poland in the east, which belonged to the Russian Empire at the time, there was nothing but a patchwork

of dukedoms, kingdoms, counties and principalities of all sizes. The Prussian kingdom is by far the largest and most powerful state. The Rhineland area be-longs to Prussia as well. There, or more precisely in Cologne, lives the 31-year-old businessman Nicolaus August Otto.

OUR ANNIVERSARY – A JOURNEY BACK IN TIME

The challenges of industrialisation

The day to day life and work of the people in 1864 was completely different than it is today. Many are still small time, self-supporting farmers. Factories do exist already and there is a railway sys-tem, but the German principalities really can't compare with actual industrialised countries like England. Wherever there is industry, there naturally is a huge de-mand for mechanical energy. The hydro power that has operated mills and ham-mers for centuries is not nearly enough anymore. The steam engine has estab-lished itself as the solution of the time. But it also has its disadvantages: Such installations are time consuming and costly and therefore hardly affordable for smaller businesses. Its operation re-quires an entire team, or at least several heater operators, who would feed the ravenous boilers constantly with fuel, because the efficiency of the steam en-gine was rather bad. Plus, its mechani-cal energy is not ready with the push of a button. Depending on the size of the boiler, it might take hours to heat it up and produce the steam for the needed pressure. Nicolaus August Otto, who does a lot of travelling as a salesman, sees virtually daily how cumbersome the work is for both the manufacturers and

About steam engines, factories and the engine of the futureTravelling back in time to the year 1864

Let us imagine ourselves back in the world of 150 years ago. Ger-many is in a state of upheaval: An agricultural nation is slowly changing into an industrial one. Life and work are relatively hard for most people, the challenges of the time are immense. Then there is this merchant from Cologne, who develops a vision that would affect our world up to this present time.

OUR ANNIVERSARY

11

the factories, as well as any transporta-tion for people and goods from A to B, where the railways does not reach. For being a merchant and businessman and not having any engineering training, Otto pursued a rather remarkable vision, and that even before the crucial year 1864: In 1861 Otto wrote that he envisioned an energy generator which "could be used to move vehicles on county roads more easily and better, as well as be useful in small industrial environments."

From inventor to entrepreneur

Nicolaus August Otto is already fa-miliar with the gas engine produced by the Luxembourg-French inventor Étienne Lenoir. It has a big advantage compared to the steam engine. Its fuel, gas, comes directly from the urban gas supply company. It is therefore available at any time, so that the machines can be started without major preparations. Otto contracts the Cologne mechanic Michael Zons to build an engine ac-cording to the Lenoir principle for him, which he then uses for his experimen-tations. Such a gas engine still weighs tons and because of its connection to the gas line it has to be a purely station-ary system by principle. To use such an engine in a vehicle, like Otto envisions,

is still a long way off. And it will still take a good while before the automobile will be invented. But Otto takes one decisive step on the way to that end: He adds the work cycle of load com-pression to the working principle of the Lenoir engine. Intake, compression, combustion, exhaust: This is the prin-ciple Otto developed, which is still used by all four-stroke engines today. This is true not only for what we call the Ot-tomotor gasoline engine in its strictest sense – a reciprocating piston engine with spark plug ignition – but also for a diesel engine and a Wankel or rotary engine. He started to develop his rev-olutionary idea, which led to internal combustion engines with better and better efficiency as time passed; more compactness, affordability and at a later stage also included mobility.

As of 1864 Otto pursued this no longer as a do-it-yourselfer, but as an entrepreneur: In that year he found-ed, together with Eugen Langen, an engineer and son of a Cologne sug-ar manufacturer with a certain capital buffer, the world's first engine factory: N. A. Otto & Cie., which was then lo-cated in the Servasgasse, right in the centre of Cologne. And as we know, this company is still in existence to this

The first Geneva convention was signed. Paradoxical as it sounds: From now on, wars are subject to international humani-tarian rules. The "Red Cross" is introdu-ced as an emblem of protection and as an organisation.

In the United States of America Abraham Lincoln is about to begin his second term. The goals of Lincoln are enormous: To end the civil war, which had been raging on for three years, to reunify the nation, and to abolish slavery.

In Bavaria a young emperor takes over the throne, a king that would be surrounded by myth in the future: Ludwig II.

Nicolaus August Otto (1832 to 1891) establishes, with the support of Eugen Langen the "N. A. Otto & Cie." Company, which was the nucleus of the DEUTZ AG of today.

EVENTS OF THE YEAR 1864

day: As DEUTZ AG, which it was named after the Cologne Deutz district, where Otto's rapidly growing factory moved to soon after.



”Working with combustion engines today means having comprehensive expertise in the system as a whole“

So how did engineers succeed in the internal combustion engine's recipe for success never running out of air? And what does a good engine builder actually have to know? For the occasion of the DEUTZ AG 150 anniversary, we took it upon ourselves to reflect on the company, and not just from the internal view of the enterprise. DEUTZ INSIDE spoke with Dr Günter Fraidl. He is the Senior Vice President Powertrain Systems Passenger Cars at AVL List and he shared his thoughts about the role of the internal combustion engine: yesterday, today and tomorrow.

Our conversation with the engine expert Dr Günter Fraidl

OUR ANNIVERSARY

13

DEUTZ INSIDE: Hello Dr Fraidl, DEUTZ is celebrating its 150th anniversary. This success story began with the industrial implementation of the ideas of Nicolaus August Otto. There is no doubt about the internal combustion engine's outstand-ing position in the history of engineering. What do you personally like about this occupational field?

Dr Günter Fraidl: As a design engineer I am fascinated by the technology of the internal combustion engine, and that even after 150 years there is still room for significant improvement potential and really no end in sight in the possibilities for further development. Legislation pro-posed more than once hurdles which made us say: This is no longer feasible, we will probably have to say good-bye to the petrol and diesel engines before too long. However, time and time again we succeeded in overcoming such seemingly insurmountable obstacles

with prestigious developments. We have reached breakthroughs which many en-gineers thought of as impossible in the past, especially in the area of emission control. And I am not ex-cluding myself from this either.

DEUTZ INSIDE: In princi-ple, there were inventions like the one by Nicolaus August Otto or the diesel engine we mentioned, since the 19th century. So as a devel-oper one might ask oneself sometimes what can possibly be left to improve after such a long time of collective inno-vate efforts?

Dr Günter Fraidl: In fact, this question has haunted our industry for decades now. There are and always have been those voices saying that the fuel cell will be the total replacement for conventional

combustion engines. However, we have also seen over these many years, that such radical alternatives – or one might say: this revolution in drivers engineering – has been set back time and time again. I also agree with the assumption that in the course of the 21st century a serious reduction in applications for convention-al combustion engines will take place. Note the words though: in the course of this century, we are talking about a rather long time period here. This is not exactly the planning horizon that makes sense for a design engineers' work. So let's look at the present day, as well as the more recent past and from there we propose a look into the foreseeable future: Electrification and hybridisation have sparked off a downright hype, which also drives on the further develop-ment of the internal combustion engine.

DEUTZ INSIDE: Is the electrification technology not in completion with the internal combustion engine?

Dr Günter Fraidl: Yes and no. On the surface it looks like the two systems are competing of course. But we also ob-serve strong synergies as a result of the two systems competing. In the end the two systems actually complement each other rather well. The one excels exact-ly at those places where the other one displays weaknesses. What electrical systems are not good at all yet is provid-ing greater distance coverage for the ve-hicles. This is the result of the electrical energy storage challenge. The internal combustion engine, on the other hand, has a highly efficient energy storage sys-tem: liquid fuel.

DEUTZ INSIDE: Now, to be honest and fair, we also need to take a look at the weaknesses of the internal combustion en-gine.

Dr Günter Fraidl: If those didn't still exist, companies like DEUTZ and AVL List wouldn't have any devel-opment goals left indeed. The efficiency of the internal combustion engine is not exactly at its optimum in the low-load ranges. By combining the internal com-bustion engine and electrification we are combining the best of both worlds. An example from my profession, the vehi-cle drive system: Electrical energy is the best way to drive in the partial-load or

”So from the point of view of an engineer, the present time is the most fascinating time in the

development of drive train/driveline development.“



low-load range. So that the necessary battery load will not decline, we use the internal combustion engine at the same time to recharge the battery, and are able to use it in its most effective way and op-erating range. From my point of view, such a solution opens up a whole new world for the internal combustion engine. So battery powered electrical drives are a life assurance rather than a completion for the internal combustion engine. This allows the internal combustion engine to concentrate on what it is good at, namely, to unfold great efficiency in an enclosed characteristic range.

DEUTZ INSIDE: We are now immersed in the field of hybrid solutions, which you just related to the field of motor vehicle drives. Hybrid is a huge topic for DEUTZ as well, where for example a serial as

well as parallel designed system, includ-ing start-stop function for an excavating machine was developed.

Dr Günter Fraidl: This example makes the following especially clear: Work-ing with combustion engines today means having comprehensive expertise in the system as a whole. It is no lon-ger enough to be an expert in engine technology alone. The overall system includes things like electrification, trans-missions or in the case of commercial equipment even hydraulics. Whoever builds these engines must know all the components and their links to the overall system. Only then can he/she apply the true core competences, namely, the op-timisation of the engine for the particular situation.

”The much greater potential lies in the fact that the operation of the

internal combustion engine may be improved with

intelligent technology such as engine control modules or hybridisation towards

a range of almost optimal consumption.“

OUR ANNIVERSARY

15

DEUTZ INSIDE: In front of that back-ground, do you still see future applica-tions for the classic internal combustion engine, as a stand-alone solution so to speak?

Dr Günter Fraidl: I see it wherever, for example due to comparatively low installed engine power, the potential savings achieved through hybridisation would turn out rather modest. This is where the internal combustion engine can show its strength, and this is also the reason why car manufacturers are committed to downsizing their engines – just as why construction equipment manufacturers are adding diesel en-gines. Because in principle the following formula holds true: The lower the pow-er of an internal combustion engine in comparison to vehicle size is, the more the engine can operate in its most effi-cient range. To put it in a bit more ama-teur terms: When I dimension an engine in a way, so that it has to put forth real effort even under normal operation, then I get an efficiency advantage, which under consideration of the technology costs involved for employing hybrids, may actually speak against applying a hybrid solution. From my point of view we are facing two main tasks for the in-ternal combustion engine. One is to im-prove efficiency. The much greater po-tential lies in the fact that the operation of the internal combustion engine may be improved with intelligent technolo-gy such as engine control modules or hybridisation towards a range of almost optimal consumption.

DEUTZ INSIDE: Your passion for en-gines cannot be missed. Perhaps you would have loved to have lived in the era

of Nicolaus August Otto in order to par-ticipate in the technical pioneering work going on then?

Dr Günter Fraidl: Apart from the fact that one doesn't have a choice in that: I find the present, as we are experiencing it right now, extremely exciting. I don't

think I would want to trade. From the point of view of an engineer, the present time is the most fascinating time in the development of drive train/driveline de-velopment, in my opinion. The field that has opened up since then, for instance through the electrification, is so vast and there are so many new possibilities to in-tegrate internal combustion engines into the new systems and to continue their development. It requires a strong willing-ness to rethink: from the detail optimisa-tion within the engine to the optimisation of the entire system instead. That is why the work of the developer today is now extremely attractive. The fascination, whose cornerstone we set 150 years ago has never stopped.

Dr Günter Fraidl was born in 1957 and holds the position of Senior Vice President Pow-ertrain Systems Passenger Cars for AVL List GmbH, a globally active company with headquarters in the Styrian capital Graz. Dr Günter Fraidl is as graduate of the Technical University of Vienna, where he received his graduate degree (Dipl.-Ing.) in mechanical engineering. Prior to his doctorate, which was awarded at the same university for a thesis on fuel mixing using multiple fuel in-jectors for gasoline engines, Günter Fraidl devoted himself to a research project at the Institute for Internal Combustion Engines. His career with AVL List began in 1987 as a team leader in the development of internal combustion (Otto) engines and he passed through various senior positions within the

company since then. Dr Günter Fraidl is the author of numerous publications in his area of expertise.

The AVL List GmbH („Anstalt für Verbrennungskraftmaschinen List“), was founded in 1948 and is still a family-owned business to this day. It is a technology service provider and employs a workforce of 6,700 associates. It is the world's largest independent organisation for the development of drive systems with internal combustion engines, as well as for measuring and testing technology. AVL List develops and improves all types of drive systems as a competent partner in the engine and automotive industries. Plus AVL List develops the simulation methods necessary for the development work and markets them. The products of their Engine Measurement and Test systems business unit actually include all devices and systems required for the testing of engines and vehicles.

ABOUT OUR PARTNER IN CONVERSATION

OUR ANNIVERSARY – ADVERTISING


MARKETING BEATDEUTZ engines aim to highlight cus-tomer benefits in their advertising campaigns. The means for that are so varied now and so different from the times when posters and projects were being created. Today we say "Advertis-ing" and "Marketing", even in Germany. Back until the 1930 we used entirely different terminology. "Reklame" was the German word, which came from the French word "réclame". The word means: proclaim, praise, to call into mind. We are displaying a multi-facet-ed portfolio of past DEUTZ advertising materials from the first decades of the company and remember that advertis-ing is also synonymous with art and the art of classical promotions.

To the MARKETING BEAT

17

OUR ANNIVERSARY

1864 1876

1867

1897

Engine No. 1

The atmospheric gas-powered engine, Engine No. 1, is unveiled at the World Exposition in Paris and goes into full production just one year later.

Four strokes that move the world

N. A. Otto completed the world’s firstfour-stroke engine for all types of fueland applications.

The first self-constructed diesel engine without a crosshead

In 1897 Gasmotoren-Fabrik DEUTZ begins constructing diesel engines under license. One year later the first self-constructed diesel engine without a crosshead evolved in the Cologne engine factory.

The fields go high-tech

In 1926, DEUTZ launches the MTH 222 on the market. As the first mass-produced DEUTZ diesel tractor, it clearly makes work more convenient and agriculture more efficient. Even today, DEUTZ remains committed to the same goals.

The origin of DEUTZ AG

Founding of N. A. Otto & Cie., theworld‘s first engine factory and seed oftoday’s DEUTZ AG, by Nicolaus AugustOtto and Eugen Langen.

1907

The triumphant progress of automatic ignition

Production of the first DEUTZ automobiles constructed by Ettore Bugatti.

1930

1926

1944

Mergers and overtakes

Merger with the Maschinenbauanstalt Humboldt AG and the Motorenfabrik Oberursel AG as Humboldt-Deutzmotoren AG.

A few years later series production starts on “air-cooled” diesel engines in the Ulm works.

Cool heads rely on the air principle

Beginning of series production of aircooleddiesel engines.

In 1946, the term “Otto engine” is clearly defined for the first time an declared DIN standard.

1974

2014

1985

1988

1993

2007

2006

“German bull” in Siberia

DEUTZ wins the biggest single order in its history. 10,000 trucks are delivered to what was then the Soviet Union for the construction of the Baikal-Amur railway.

Shortly afterwards: Incorporation of the Magirus Deutz AG commercial vehicle division into a jointcompany founded with FIAT under the name of IVECO B.V., Amsterdam.

The unrivalled all-rounder

For the first time ever, DEUTZ delivers a power plant with an integrated cooling system. Oil not only ensures the correct lubrication – now it even keeps the running temperature under control. In 1988, production of the 1011 series begins, and twelve years later, the unit with the number 500,000 rolls off the conveyor.

KHD expands its range

Takeover of the second oldest engine factory in the world, Motoren-Werke Mannheim AG (MWM) (until 2006).

With seven engine classes ranging from 100 kW (136 horsepower) to 7,250 kW (9,850 horsepower), the company also services the shipbuilding sector and the important market segments of large aggregate machinery construction and power plants from then on.

A new engine factory and a new name

Commissioning of a new engine factoryin Cologne-Porz. It is one of the mostmodern of its kind worldwide.

In the Annual General Meeting on 10th September 1996 the shareholders approve the change of name into “DEUTZ AG” effective by 1st January 1997.

Entering new markets

Signing of agreements with the Chinese commercial vehicles manufacturer FAW Jiefang Automotive Co., Ltd. for the establishment of a joint venture under the name DEUTZ (Dalian) Engine Co., Ltd.

DEUTZ – Driver of Innovation

With the world’s first hybrid propulsion for a wheel loader, DEUTZ AG sets standards in building machinery drives.

Presentation of the DEUTZ Natural Fuel Engines powered by rape seed oil and/or diesel fuel.

150 years DEUTZ

In 2014 DEUTZ AG celebrates its 150th anniversary.

In 1864 Nicolaus August Otto founded the world’s first engine factory, laying the foundation for a company that to this day remains one of the leading independent engine manufacturers in the international market.

150 years on, DEUTZ is a full-line engine specialist in the development, production, sale and servicing of diesel engines for professional applications. It offers a broad spectrum of liquid-cooled and air-cooled engines with capacities ranging from 25kW to 520kW, which are used in construction equip-ment, agricultural machinery, commercial vehicles, rail vehicles and ships.

DEUTZ customers are supported by nine distribution compa-nies, nine sales offices, 16 service centres and over 800 sales and service partners in more than 130 countries around the world.


We are at a peaceful country estate in the South of Cologne. Children romp around the courtyard and a farmers market offers fruits and vegetables di-rectly from the producer. Next to that a small residential building, on which a simple doorbell sign informs about its residents: Langen. Arnold Langen, the grandson of the DEUTZ co-found-er Eugen Langen, 88 years old, asks us to join him in his comfortably furnished living room, together with his wife Hei-

di, to bring some of the memories of this grandfather back to life.

When was the last time that Arnold Langen took the sus-pension railway in Wupper-tal for the last time? The 88 year old smiles and thinks for

a minute. "This has been quite a while ago, I think five or six years ago maybe" he responds and looks over to this wife Heidi for verification. She nods, smiles as well and says: "Back in the days the journey was a fixed part of our family reunions. But not anymore today", she adds. "Family Reunion" – a term that spontaneously brings up the association of smaller, sometimes larger round of people around a coffee or picnic table. But not for the Langen family, because this family includes a whopping 2000 people. As a young man he had com-pleted an apprenticeship with a compa-ny located directly under the suspended railway, adds Arnold Langen, and he couldn't help but see this special vehi-cle on a daily basis. But only few knew about the special connection between

this young man and the suspended rail-way in Wuppertal, as is was no other than his grandfather who had invented it.

Already at the beginning of the conversa-tion a heart-shaped sugar cube next to the coffee reminds us that Arnold Langen bears a name that had become national-ly famous long before this operation, as it was part of the traditional "Pfeifer & Lan-gen" sugar enterprise based in Cologne. Eugen Langen often stays in the back-ground next to Nicolaus August Otto, even though he was the driving force at the beginnings of the engine development and Otto's developments were only able to continue with the help of his financial engagement. When Nicolaus August Otto and Eugen Langen met, one thing con-nected them immediately: a common vi-sion. Inspired by the development of an internal combustion engine by the French-man Étienne Lenoir, the two shared the goal of developing a mobile drive engine for small businesses and industry, which was to literally set the world into motion.

After a first success in 1867 with the development of the atmospheric gas power engine, they achieved in 1876, 13 years after they had founded "N.A. Otto & Cie.“, the first engine facto-ry of the world, a real breakthrough.

Whenever the question arises about who the creator of the internal com-bustion engine is, the response is usually rather quick. Nicolaus August Otto, the man whose four-stroke engine named after him in 1876 began his march of triumph around the world. The one who proposed the name "Otto's new engine" and always stood modestly in the background was Eugen Langen. We are talking about the son of a Cologne manufacturer who had a substantial part in the realisation of Otto's vision and not only with his financial backing. The grandson Arnold Langen remembers the famous grandfather in his conversation with DEUTZ INSIDE.

Portrait

Faith in progress

OUR ANNIVERSARY – A PORTRAIT

150 years ago he was a strong sup-porting force for his friend Nicolaus August Otto: Eugen Langen.

Arnold Langen and his wife Heidi in front of a picture of his father Dr Arnold Langen – as a young man

MARKETING BEATAfter many unsuccessful attempts, they were finally successful in manufacturing the world's first, four-stroke engine with load compression, usable for "any fuels and applications". "Otto's new engine" is what they chose to name the engine, which ran on town or lamp gas.

"My grandfather's suggestion" remem-bers Arnold Langen. "It was an act of friendship towards Otto, who he always spoke highly of in the presence of Got-tlieb Daimler as well, who was the tech-nical director at the time. My grandfa-ther knew that Otto at times had a little trouble holding his ground in the face of Daimler and the design engineer of that time, Wilhelm Maybach; so he con-tributed the best possible support he could come up with." But Langen kept working on his own ideas, along with doing the administration work and han-dling the finances and bookkeeping of the company – and he did so with suc-cess. In 1892 the engineer puzzled over a transportation system, which was extraordinary for its time; it was de-signed to transport loads hanging from a mono-rail system. He set up a test strip and continued to develop his concept for a people transporter on the factory property of Deutz-Cologne. This is how he gifted the city of Wuppertal with its, even today, still unmistakeable charac-teristic: the Schwebebahn, or suspend-ed mono railway. Schwebebahn actually means 'hover rail' and technically would not be correct, but that was the name given by Langen himself: "A system

of hanging wagons. I called the thing "hover rail". An innovation that was not able to convince everyone at first, as Ar-nold Langen recalls from the old family stories. And it was no one other than Emperor Wilhelm II., who remarked, when the plans for this unusual form of transportation were presented to him: "Not above, but below the ground is where it shall run!" On October 24, 1900 the Emperor himself, accompanied by his wife Auguste Viktoria officially inau-gurated the railway on its maiden trip from Elberfeld to Vohwinkel. Carl Eugen Langen unfortunately did not live to see the construction of his "hover railway", he passed away on October 2, 1895 as a consequence of food poisoning from a seafood dish.

Just like Arnold Langen didn't brag about the Wuppertal invention of his grandfather, Eugen Langen never took the centre stage either. "My grandfather was, as one would say today, a vision-

ary. He did not operate under the motive of gen-erating as much financial return as possible, in as short a time as possible", remembers Langen. Lan-gen explains: "His aim al-ways was to realise goals

that would be of use to the community", and he points to the oil painting hanging over the fireplace in the living room. It shows two young boys, maybe age six or seven, one of which studies eagerly in a book, while the other looks about curiously. "The boy looking about is my father", says Langen with a smile. "But he was not a dreamer anymore

21

than his father Eugen. They were entre-preneurs, who recognised good ideas quickly when they saw them. There-fore Eugen Langen didn't hesitate at all to support Otto in his plans. As an entrepreneur, engineer and inventor, his main goal was to mobilise industry, to literally set something into motion. He had technical knowledge, and he knew that this could be useful in many ways." And Eugen Langen applied his business talents in many ways. He was involved in a variety of supervisory boards in the electrical and transportation industry as well as in banks and insurance compa-nies, and represented his industry in the respective commerce associations. His commitment to a generally recognised patent law earned him the nickname "Patent Langen".

His most defining characteristic, so says the grandson, was that he had: Pa-tience. "My grandfather was never in a hurry, as long as he knew what defined the project. Arnold Langen remembers: If he was convinced of the success and usefulness of his conviction, he put forth his full zeal and support and was smart enough to set out on the right course, right from the beginning. That he was successful in doing this can be plainly seen in Wuppertal.

To the question of whether in looking back he was proud of his grandfather, for what he achieved together with his companion, he answered with a long quiet thought, which gave much more weight to his answer than a simple "yes" would have. "It is not pride, but rather recognition of what he has done and the firm conviction that his mind was correct." Modest, just like his grandfather, Arnold Langen mentions in just one sentence shortly before the end of our conversation that he himself, together with another chemist, succeed-ed in developing the gelling sugar in the mid-1960s. This was also an invention that wrote food industry history, and still Arnold Langen is as modest about it as the sign next to his doorbell by his house's entry.

OUR ANNIVERSARY

”Your name shall become famous enough, just let me

take care of that.“ were the words of Eugen

Langen to Nicolaus August Otto, in 1876

this thinker described an ancient dream of mankind: the search for never ending or eternal movement. The thoughts of some people in Antiquity circled around the question, whether a machine could be invented that would replace human strength and force. Bottle jacks and lever constructions increased the operators working forces, but muscular energy it-self still remained irreplaceable.

In the Middle Ages scholars experimented with something they called "perpetuum mobile" or perpetual motion. They experi-mented with designs, which once set into motion, were to remain in motion forever.

The great developments began around 1800: It was still to be a long road from the experiments with gunpowder, the in-vention of the steam engine, on to the first internal combustion engine. The de-cisive factor was the age of steam en-gines. The 19th century was driven by its enthusiasm for technology and mobility: there were patents for steamer ship de-signs (1809), the steam locomotive from England (1829) and nearly 30 years lat-er the Hippomobile of the Frenchman Étienne Lenoir, who had developed the first reliably functioning gas engine.

The self-taught Nicolaus August Otto obsessed since the beginning of the 1860s over the optimisation of this Le-noir machine. A workshop near the Co-logne railway station was to become the birthplace of a technical revolution. Otto founded on the 31st day of March 1864, together with Eugen Langen, the "N. A. Otto & Compagnie" enterprise. And three years later they succeeded. Otto intro-duced his first atmospheric engine, the Atmospheric gas engine.

The economic miracle, economic crises, global change

The fulfilment of the ancient dream of mobility actually came true, but only after


Driving to work, to athletics and on a holiday: What would our modern society be without mobility? Today there are more than a billion cars, which make sure that people are mobile. Trucks and buses transporting goods and people all over the world. The diesel engine has become the backbone of our global economy. It is what drives the gigantic ships which in turn transport the goods across the world's oceans. More than 85 percent of global goods are transported across the sea, which would be unthinkable without the invention of the engine.

Philosophers, visions, perpetuum mobile

Humanity has not just started dreaming of mobility in the 19th century, that was just the century when the engine was invented. Already 600 centuries earli-er, in the 13th century, the English phi-losopher Roger Bacon wrote that "One should manufacture instruments, with which the largest ships could be car-ried along with the greatest speed and only a single man as the helmsman. One could manufacture wagons, which could move with incredible speed, with-out the help of animals." The visions of

Our society is in continuous mobile mode. Ordered today, delivered tomorrow and the holiday in the tropics is only 8 hours away. What has made this development possible, why the four-stroke engine played such a big part in it, and how fragile this condition of mobility actually is. An essay on engine philosophy.

OUR ANNIVERSARY – AN ESSAY

Today's mobile

world

23

OUR ANNIVERSARY

two nightmarish world wars. The Mar-shall Plan and Integration with the West were supposed to help the young Feder-al Republic of Germany get back on its feet economically. The Zeitgeist was con-sumed with the Economic Miracle and also – mobility. Within 20 years the num-ber of vehicles in West Germany multi-plied thirtyfold: from 500,000 (1950) to almost 15 million (1970). This increasing motorisation brought about an unprec-edented mobility to the German people and companies. Just how dependent the Federal Republic of Germany was on global developments became very ap-parent in 1973. The first oil crisis led to a dramatic reduction in oil exports. The raw material that kept modern econo-mies running became scarce for the first

time. The first counter measures were to throttle economic production, mandatory conservation measures and driving bans were implemented as well. However, a change of attitude was required for the long term.

6.06 meters long, 2.44 meters wide and 2.59 meters high – or, in other words: 10,000 pairs of jeans, 20,000 packaged watches or hundreds of flat screen tele-visions. Sea freight containers for the shipping industry are a symbol of global-isation. Over two thirds of cross-border transportation for commercial freight is done seaborne globally. When the ship-ping company owner Malcom McLean introduced the sea freight container in 1956, he had no idea what a revolution

he had set off. Today, nearly 30 mil-lion freight containers are in circulation. Ocean giants are capable of loading 10,000 container boxes and ship them all around the globe. Today's world – fits on a ship.

Mobile communications, great possi-bilities, fragile mobility

Global trading has increased dramatical-ly in the last few decades. The value of exported goods in 2008, with 16.1 trillion USD, was 124 times higher than it was in 1960. Falling transportation costs have led to the point where a pair of jeans can now be shipped across the Atlantic from the US to Germany for about 40 Euro cents. But the economic indicators are

world

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NASA's space shuttle, the icy cold of Siberia and the Gotthard Tunnel in Switzerland all have one thing in common: the DEUTZ AG. DEUTZ engines are not mass produced. They are the result of innovative and in-dividual solutions, which have always been developed and implemented in close collaboration of experts, inventors and engineers with the input of the customer. Whether for construction and agricultural engineering, for commercial vehicles, airfield equipment, ships or Gen Sets – DEUTZ has been successfully operating in all these highly specialised fields for many years. In addition to outer space, the freezing cold of Russia and tunnel construction, we have been able to display some rather impres-sive milestones – Performed by DEUTZ.


On land, on water

and in the air

only one phenomenon of many which do the term "globalisation" justice. Rather, the growing together of the world into a "global village" has become the under-lying trend of the 21st century. Internet and smart phones facilitate global com-munication – anytime and anywhere. In-formation is able to reach the recipient on the other side of the globe within a very short time via e-mail, SMS or vid-eo-chat. These developments present undreamt-of possibilities for the export country of Germany. Cologne is a good example: The Rhineland metropolis, as a Western central media and service pro-vider, has well adapted to the new inter-national terms and conditions.

Even though globalisation has created definite advantages for many people, with its economic growth and individual development opportunities, it is still the discussion of much controversy. Just how fragile the "global village" system can be was exemplified by the attacks of September 11, 2001. Apart from the human tragedy, the attacks also had a grave effect on the US economy. The sub-sequent wars in Afghanistan and in Iraq deteriorated the budgetary prowess of the superpower quite rapidly. And then in 2007, when the real estate bubble burst, the result was the most serious global recession since 1929. Not only the economies began to develop glob-ally, but also the resulting environmental problems. Environmental awareness and sustainable energy policies moved up the socio-political agenda considerably. Climate change affected by increased CO2 emissions or the oil spill off the coast of Mexico in 2010 are two prime exam-ples for the downsides of the develop-ment of global economies. It is crucial for companies to understand globalisation and all its facets as the challenge of the 21st century. And to combine mobility with sustainability, good reasoning and environmental aspects.

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25

On the go with ”Sissi“

Switzerland is planning to complete one of the greatest and most unprecedented large-scale projects, the longest railway tunnel in the world, by 2016. Once com-pleted, trains will whoosh through at a speed of 250 km/h underground, through the Gotthard mountain and will connect Italy and Switzerland in that way. DEUTZ is a big part of this Construction Site of the Century. On October 15, 2010 at 2:20 p.m. it was done. Under enormous uproar and at a depth of 2,500 m, the huge tunnel boring machine "Sissi" broke through the last meters of massif rock in the mammoth project of the Saint Gotthard tunnel. After approximately ten years of construction, the way for this major project has been cleared; in the not too far future the lon-gest tunnel in the world will have burrowed through the Swiss Alps in the direction of Italy. In order to complete the tunnel by 2016, 2,500 employees are working in three shifts without ever seeing the light of day. At up to 28 degrees Celsius (dry-bulb temperature) and a humidity of more than 50 percent in the tunnel, the conditions are a constant strain on man as well as ma-chine.

The mountains of rock are snapped out of the stone massif with the help of pre-blast-ing and tunnel boring machines, under strict security measures. The waste rock is transported out on conveyor belts where the excavated material will be properly dis-posed of. More than 120 special tunnel lo-comotives are therefore in continuous op-eration. These machines, which weigh up to 35 t, are strong and flexible in their min-ing applications thanks to being equipping with DEUTZ engines. In addition to that, the operation uses multifunctional devices, powered by DEUTZ, which install routing cables in the tunnel tubes. A literal mam-moth project, which will connect Italy and Switzerland and will be the longest railroad tunnel in the world, with its 57km length.

OUR ANNIVERSARY

German bulls in Siberia And the records go on. In 1974 DEUTZ was awarded the single largest or-der in its history so far: 10,000 heavy- duty trucks for the then still Soviet Union, ordered for the construction of its 4,000 km long Baikal-Amur-Magistrale (BAM) through Siberia – the contract was worth billions. MAGIRUS-DEUTZ trucks were known for being extremely robust and durable. They were marketed appro-priately as the "German Bulls". The air-cooled diesel engines were a decisive advantage in the extreme weather con-ditions of the Russian East: where there is no cooling water, none can freeze. And in hot regions, it cannot boil over either – these are two decisive reasons for the marketability of these trucks. That project of the century was completed in 1984 and went down in the history books. Another historical event happened a year earlier, with the construction of the "Orbit Transporter" using DEUTZ en-gines. In 1983 a company, specialis-ing in heavy transports, built the "Orbit Transporter". The client was the National Aeronautics and Space Administration of the United States, NASA. The almost 70 ton heavy space shuttle Enterprise was transported on a 76-wheeled transport-er, equipped with a DEUTZ engine – a freight worth billions that had to be trans-ported gently and delicately.

The living desert!

"The living desert." This was the title of the epochal documentary broadcast in 1954, which became a synonym for the highest levels of robust adaptability and powerful stability. These are the properties that distin-guished DEUTZ and which made them the company of choice for desert expeditions. The Tatra-Team won the Paris-Dakar rally in 2001, said to be the "most difficult rally in the world". At the heart of the success was a DEUTZ series 1015 engine. The com-bination of motor, driver and vehicle had proven itself to be successful in the past: the team had been able to win repeatedly since 1990. The compact 1015 high-per-formance engine in the Tatra truck provided 460 kW (620 hp) and unfolded a maximum torque of 2,760 Nm at 1,200 rpm. These are key points in this desert victory.

We have been able to celebrate triumphs in the United Arab Emirates since 2009 as well. Because in that year the 5.55 km long Formula - 1 race course Yas Marina Circuit in Abu Dhabi was completed. A perfectly constructed area with pit lanes, rescue routes and access roads was required for this technically demanding racecourse. Construction equipment with DEUTZ en-gines was used, which met these require-ments and helped ensure that the racing drivers could start using the tracks shortly after the end of construction.

Arctic ice cover Ahoy!

From one climate extreme to the next: using ship engines from Cologne to go to the southernmost point on this earth. In the year 1982 the Federal Ministry of Re-search and the Alfred Wegener Institute put a new ship, the Polar Star into service for polar research. The ship is powered by four supercharged, high-performance die-sel engines from the KLÖCKNER-HUM-BOLDT-DEUTZ (KHD) company and the

and in the air

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floating research centre has been for three decades now a very reliable means of transportation between Arctic and Antarctic and its home port of Bremerhaven. DEUTZ started back in 1893 with its production of ship propulsion systems. Changes in the shipping industry have been substan-tial since then: the ships are larger, hp are continuously increasing, they are diesel in-stead of gasoline powered. DEUTZ power systems of up to 2,200 kW (3000 hp) have been produced since the 1950s. Diesel engines from the Cologne company have been used for hovercraft on the open sea as well as on the Basel-Rotterdam routes for Rhine passenger tour boats. In 1982 the KHD delivered the diesel engines for Europe's highest performance push boat, the Albert Auberger with power of more than 4,400 kW (6.000 hp).

And evidence for DEUTZ being active not only above water, but also below is the spectacular Marmaray project in Istanbul. In 2013, after just about ten years of con-struction, the 16 million people metropolis completed one of the most impressive technological traffic projects of our time – using DEUTZ technology. A railway tunnel now connects the European and the Asian part of the city of Istanbul. Its length: 1.4 km, 56 m below the water surface, on the bottom of the Bosporus. Additional fol-low-up construction will be a 63 km long railway section, which already existed be-fore. A DEUTZ BF 3 L 2011 drive provid-ed the power for maximum performance of the wet application concrete spraying equipment, which built up the concrete elements with up to 5,000 m3 of concrete. Wet-mix shotcrete is always used when high quality hardened concrete and high performance is a must, like for instance for mechanised tunnel construction. A first class construction project.

This division and application versatility is the trademark of DEUTZ. The products are customer specific and unique so that DEUTZ has made a name for itself as the full-line engine specialist, backing develop-ment and production, sales and service of diesel engines for commercial applications. The company offers a wide range of liq-uid- and air-cooled engines with a power range from 25 kW to 520 kW, which are used in construction equipment, agricultur-al machinery, commercial and rail vehicles as well as ships. Or to put it another way: DEUTZ is there, whether on land, in the water, or in the air.

DEUTZ has always worked on the inter-national scene. DEUTZ has successful-ly collaborated with many partners over the course of the past few decades.

Sweden, Italy and France

Because of globalisation, it has become increasingly important to recognise and maintain growth and possible future markets. The global integration has only further increased the demand for service and customer support. DEUTZ and its 800 service partners work in more than 130 countries around the world – collabo-rating with strong partners. In September 2012 VOLVO increased its share in the DEUTZ AG to just over 25 percent and became its largest shareholder. 22 million shares for approximately 130 million Eu-ros were transferred from the Italian SAME DEUTZ-FAHR (SDF) to the Swedish car manufacturer.

This was preceded by more than three decades of cooperation that went far be-yond the national borders. The Industrial Vehicles Corporation came into being, short: IVECO. IVECO was founded in 1975, as a merger of the truck division of Fiat, the Italian truck manufacturer OM (Officine Meccaniche), the French truck manufacturer Unic, as well as the Ger-man MAGIRUS-DEUTZ AG, led by the Fiat Group, who owned 80 percent of the new corporation. The Turin company was interested in the added value of state-of-the-art production facilities as well as the expansion in the German market. Fiat agreed to let the Cologne company main-tain the MAGIRUS-DEUTZ brand plus they won an attractive customer for their



air-cooled engines. However, the cost-ly restructuring in a period of economic downturns proofed to be an unfavourable starting condition. When the market situ-ation for commercial vehicles on the Eu-ropean market deteriorated dramatically in 1982, KHD decided to sell its IVECO shares to Fiat. As a result, the Turin man-agement board decided to close the bus manufacturing plant in Mainz, as is hadn't been able to remain profitable towards the end. The sound of the "Bulls of Ulm" was preserved though. KHD continued to de-liver air-cooled DEUTZ diesel engines to IVECO until November of 1984.

DEUTZ-FAHR is a German agricultural and tractor machinery brand that was founded in 1977. It was created from the previously independent brands DEUTZ and FAHR and merged into the KHD ag-ricultural division. Since 1995 the DEUTZ-FAHR division has been part of the Italian SAME Group, which has been operating under the name SAME DEUTZ-FAHR (SDF) since then. DEUTZ-FAHR produc-es tractors of the Agrotron 6 and 7 series, in a plant in Lauingen, which employed about 700 associates in 2013. The suc-cesses achieved at the beginning of the 1990s camouflaged the slow decline in the agricultural equipment markets. If the market volume for tractors in western Eu-rope still was 216,000 units in 1987, it had declined to only 148,000 by 1994. Slid-ing to the sixth position for tractors in the West-European markets, led KHD to sell the agricultural business unit of DEUTZ-FAHR to the Italian SAME Group in 1995. But the brand DEUTZ-FAHR could be retained – it still bears notice to the long standing tradition of the DEUTZ AG in the

GLOBAL PERFORMANCE ➤

27

OUR ANNIVERSARY

field of agricultural machinery. If nothing else, this is demonstrated by the close cooperation with the Italian manufacturer of agricultural machinery: To this day the DEUTZ AG is the main supplier of diesel engines for SAME DEUTZ-FAHR tractors and harvesting equipment.

USA and China

In 1983 the KHD acted already as a glob-ally active Group, with 40 subsidiaries and countless distributors and service centres. But changing markets and a decline in demand forced KHD into strict constraints and reconstruction measures. The Group stepped up to the challenge with acquisitions in the engine and agri-cultural machinery areas and in 1985 they took over the Motorenwerke Mannheim AG (MWM); this was a historic merger: the oldest engine manufacturer DEUTZ took over the second oldest engine manufac-turer of the world, MWM.

Leading the way in the same year was the agricultural division acquisition of the me-chanical engineering Group Allis-Chalm-ers in the US. KHD expected to gain a stronger presence in the North-Ameri-can market. The Group was now able to compete with added strength and under the name of DEUTZ ALLIS, entering the market with a complete agricultural en-gineering product range for the US. The overall situation remained tense, and the signals sent by the international markets were clear. KHD launched a rigorous re-structuring programme and some very important measures had been success-fully implemented by its 125th anniversary in 1989. After various assets had been trimmed and disposed of, the focus on a leaner corporate culture was successful. Since the end of the 1990s DEUTZ has in-creasingly invested in the Asian economic markets. One year after the restructuring of the company the Cologne company founded a joint venture with the Chinese Weichai Holding in 1998. The joint venture in the east coast city of Weifang produced

crankcases, cylinder heads and connect-ing rods, as well as engines of the 226 series. These engines in the performance range between three and seven litres ca-pacity are used in construction equipment and commercial vehicles. The need is very great here, because the construction in-dustry in the People's Republic with 1.3 billion people is booming. Today the plant with more than 650 employees produces more than 40,000 engines a year.

Cooperation was broadened towards the end of 2006. The largest Chinese manu-facturer of commercial vehicles and die-sel engines, the First Automotive Works (FAW), founded a production facility for diesel engines together with DEUTZ in Dalian. The Rhineland engine manufac-turer invested 50 percent and about 60 million Euros into the joint venture. The company produces more than 100,000 engines per year in the port city of Dalian with 2,000 employees, which makes it the second largest production facility of the company after its Cologne site. The "Land of the Dragon" will remain in a prominent

first place on the priority list of DEUTZ in the second decade of the 21st century. In order to further expand its presence, the enterprise established a sales and service company in Beijing in 2010 and participat-ed in 2011 with its engines at the BICES exhibit, the largest Asian trade fair for con-struction equipment. In the record year 2011 the Cologne company decided to launch a third joint venture. In Linyi, in the Shandong province, DEUTZ cooperated with the Shandong Changlin Machinery Group Co., a construction equipment and tractor manufacturer. DEUTZ participated in the joint venture with 70 percent. The plant, with a capacity of about 65,000 en-gines per year produces machinery with under four litres capacity for the Asian construction and industrial machines mar-ket. DEUTZ was able to achieve a turnover of 380 million Euros in the fiscal year 2012 from the Chinese joint ventures alone – which is almost one third of their total turnover. The Middle Kingdom will remain the market of the future for the DEUTZ AG even after its 150th anniversary.

OUR ANNIVERSARY – PARTNERSHIP


The Middle Kingdom is not only the work bench of the world, as it has been considered up to now by some Western players. Much more so is China the world's largest market for heavy trucks, as well as construction machinery and therefore a market for DEUTZ engines. DEUTZ realised early on that the best way to meet the chal-lenges of such a market, which is rapidly developing, is with a production facili-ty in the country itself. DEUTZ engines from China for China – they strengthen the entire international DEUTZ Group and with it all other locations, all the way back to the headquarters in Cologne, where the company is celebrating a look back at 150 years of manufacturing.

Step-by-step expansion of the local presence

In cooperation with partners DEUTZ has entered sev-eral joint ven-tures in China for the produc-tion of engines. Since 2007 DEUTZ operates together with First Automotive Works (FAW), one of the leading automobile manufacturers in Chi-na, DEUTZ (Dalian) Engine

Production capacities – not only in Europe

Co., Ltd. As the name suggests, this 50/50 joint venture is located in Dalian, with over six million inhabitants and a major seaport on the yellow sea in the province of Liaoning. Its production are diesel engines with three to eight litre displacement capacity for the Chinese automotive market.

The Weifang Weichai-Deutz Diesel Engine Co., Ltd., was launched in Weifang several years earlier, in 1998 to be exact. The city is located in the Shandong province, almost in the cen-tre between the metropolitan cities of Beijing and Shanghai. The DEUTZ partner in this joint venture, also with 50 percent participation, is the engine manufacturer Weichai Power. Their product range covers licence engines from the 226B series (four to eight litres) for the agricultural equipment, aggregates, construction equipment, automotive and marine sectors. An-other city located in the Shandong province is Linyi. This is where the DEUTZ Engine (Shandong) Co., Ltd. has its headquarters. Founded in the year 2012, it is the youngest of the three DEUTZ joint ventures in China. DEUTZ owns 70 percent of the shares in this production company and the partner Shandong Changlin Machinery Group Co., Ltd. in Qingdao 30 percent. The purpose of the joint venture is the manufacture of engines up to four litres with a main end-use in mobile work equipment. This gives DEUTZ in China production capacities for virtually any engine size.

From the region and for the region – in South America as well

DEUTZ is operating the "DASMA" company together with its part-

ner AGCO, which means: DEUTZ AGCO Motores S.A.

The seat of this 50/50 joint venture is Haedo, a city in the metropolitan area of the Argentine capital Buenos Aires. DAMSA

engines produces for the local market,

similar to the joint ventures in

China, spe-cifically for agricultural and indus-trial applica-tions. Many

A r g e n t i n e buses are also equipped with

engines from DEUTZ Motoren

"made in Haedo".

Not only in this 150th anniversary year of its founding can DEUTZ present itself as a company active on the global market. Its production is for the world market, with production sites located, aside from in Germany, in Spain and in the US as well. In addition, DEUTZ has established four joint ventures for engine production. The focus in on the largest economy in the world: China.

International joint ventures of the DEUTZ AG

29

When Ertugrul Aras looks out of his office window, his gaze falls on a parking space, behind which he can see the emergence of a rapidly growing city. Both the city and its people are still somewhat unaccus-tomed for him, as is the language of the country which has been his new home since the previous year: China.

In 2013, the Cologne-based employee's attention was drawn to a job advertise-ment for the Joint Venture DEUTZ (Dalian) Engine Co., Ltd. After considering this for a number of days and discussing it with his family, the decision was taken: The new home away from home would be in China. "I have always been fascinated by China. It is a country with a future and is complete-ly different from anything we know. It also always reminds me of Marco Polo, who learnt so much in China and returned lad-en with varied and colourful impressions," says Ertugrul Aras. Yet, although the Chi-nese culture does have him spellbound, the decision to move to China was not an easy one. "Important decisions can only be taken once. Therefore they must be care-fully considered in the first place. Howev-er, the task description was very interest-ing and our Joint Venture DEUTZ (Dalian) Engine, which I had already got to know during a brief sojourn there, also harbours great potential. I simply did not want to miss out on the opportunity of becoming actively involved there," Aras explains.

Nevertheless, he was aware that the fam-ily still had a long way ahead of them be-fore this dream could come true, yet the anticipation in looking forward to some-thing new as well as the new respon-sibility quickly outweighed the possible concerns. Aras and his wife plunged into work and got down to preparing for the

A New Home in the Land of Smiles

OUR ANNIVERSARY – EMPLOYEES

For seven years Ertugrul Aras has been responsible for quality assurance at DEUTZ AG in Cologne-Porz. Mr Aras, who is Turkish by birth and grew up in Duisburg, has lived in Cologne for 7 years. Needless to say, he has become deeply rooted in the cathedral city of Cologne, with friends, family and his place of work. In November 2013, the 41-year old ventured the great leap and, together with his family, decided to embark on the adventure of emigration.

new endeavour, refreshing their English skills and reading everything they could find on China. The little ones, the 2 year-old son Kerim and the 6 year-old Taylan, were also in for some major changes. Yet here, too, Ertugrul Aras made the nec-essary preparations. "My oldest son has been getting English lessons for a number of months now, to ensure that he will be as well-prepared as possible. And with my youngest son, I of course have abso-lutely no concerns that he will be just fine."

However Ertugrul Aras and his wife had to consider quite a number of things very care-fully. After all, from their home-base in Ger-many everything had to be prepared and organised for the new home country. "One really has to understand that the entire life is starting from scratch for the family once again. This means that, apart from finding accommodation, school and kindergarten also have to be organised. And in this re-gard numerous factors have to be consid-ered in detail, because it is very important to avoid making incorrect decisions."

Yet the family also received a great deal of support from DEUTZ. "DEUTZ AG supported us extensively in preparing for this new endeavour and in the moving stage, and they also arranged contacts to experts who helped us both on site in

Dalian and here in Germany," Aras recalls. Thankfully, it also didn't take long before the colleagues in China took the new DEUTZ family under their wings. "Imme-diately after our arrival, we got plenty of support from the colleagues in Dalian. Of course this is very important and useful, as we neither knew the language nor the daily establishments, which is very import-ant, especially in the early days."

In the meantime the Aras family members are a bit more relaxed with regard to their everyday life in China, although the fast pace in China does sometimes counteract this to a certain extent. "Combining the rap-id pace of the Chinese mentality with the German consistency, thus attaining optimal results for DDE and DEUTZ, certainly poses a challenge for me," Aras says amusedly. The second, much larger, challenge con-sists of thousands of symbols and is about 3,000 years old: the Chinese language.

"I can already count quite well in Chinese and I also know a number of everyday Chinese words. My wife and I will soon be starting with Chinese lessons. It is very important to have a command of this language because, especially in our province, there are only a few persons who are able to communicate In English. Apart from that, learning the language is the best and fastest way of getting to know a culture," Aras is convinced. This can only be beneficial for his new task, because particularly with regard to quality, language is an essential tool. "I manage the entire quality assurance at DEUTZ (Dalian) Engine. The department consists of four teams, supplier quality, customer quality, internal quality (production and assembly) and finally, the group for ma-terials testing. 150 people are employed in our department, all of whom do their very best to satisfy our customers." Ertu-grul Aras is also happy with his decision to move away from the metropolis along the Rhine to the Land of Smiles. "If someone happens to ask me today where my home is, I am happy to say that I can provide numerous answers: Germany, Turkey and hopefully in the near future, China, too."

OUR ANNIVERSARY – IN PICTURES


Turbulent HistoryIn the 150 years of its history, DEUTZ can look back at numerous milestones: In the following you can see a selection of significant turning points in the history of DEUTZ.

OUR ANNIVERSARY

31

Company foundersNicolaus August Otto (1832 – 1891)

Founder of the first engine factory in the world, in-ventor of the four-stroke engine and the low-volt-age magneto ignition. Its developments created the basis for our mobile society. Above all the name "Ottomotor" or "Otto" engine for petrol/gas-oline engines reminds us today of the pioneering achievements of this skilled businessman.

Eugen Langen (1833 – 1895)

The engineer and inventor Eugen Langen was one of the most influential figures in the Rhine-land industrial area. The establishment of an engine factory together with Nicolaus August Otto was only one of his many entrepreneurial achievements. He was particularly engaged in the sugar industry and made his name famous as the constructor of the Wuppertal suspension mono-railway.

Famous associatesGottlieb Daimler (1834 – 1900)Wilhelm Maybach (1846 – 1929)

The two automotive industry pioneers worked in the Deutz AG gas engine factory from 1872 until 1882: Gottlieb Daimler as the director of engineering, Wilhelm Maybach leading the en-gine production. After their departure from the company they developed the world's first high-speed four-stroke engine based on Otto's gas-oline engine. In 1886 they created the world's first four-wheeled automobile powered by such an engine.

Ettore Bugatti (1881 – 1947)Even the legendary automobile designer Ettore Bugatti was once on the payroll of the gas engine factory Deutz AG. He was responsible for developing an automotive brand for DEUTZ from 1907 to 1909. He later used the oval DEUTZ-Automotive type plate in a slightly modi-fied form for the sports car series which he pro-duced in small numbers.

Famous people from the DEUTZ AG


OUR ANNIVERSARY – OUR FUTURE

First place, more efficient, more successful

The goal for the future remains: DEUTZ will offer the most successful engine systems in the world. To be able to realise this objective, the company developed a strategic programme through 2020 – with three core points. An overview.

world – this is our vision". As the first en-gine manufacturer in the world, we see ourselves holding a historic responsibility to continue to be a driving force for inno-vation. The company has recognised the

DEUTZ has very specific ideas about its own future, in order to successfully ad-dress the next few decades: The com-pany's presentation states: "We offer the most successful engine systems in the

signs of the time at an early stage and has invested in the efficiency and environmen-tal friendliness of its engines. Reduction of fuel consumption and the reduction of CO2 emissions are the key requirement of

OUR ANNIVERSARY

In addition to our active reseller manage-ment and the further qualification of our dealer network, keeping in view the ever increasing complexity of the products, this can also mean that we may invest in select locations in service centres which may be managed in-house.

2. Expansion of the product base with technologically superior productsWith the introduction of the Tier 4 emis-sions standard (interim and final) DEUTZ had to fundamentally revise its engine portfolio. The engine platform was stream-lined from seven to five, without limiting the performance range of 25 to 520 kW. By applying a platform strategy and the possibilities of electronic management, the number of parts has been able to be reduced significantly. With regard to the upcoming final implementation of emis-sion level Tier 4 in 2014, the development work for the basic engine is largely includ-ed in that of the Tier 4 interim level. The product portfolio will be rounded out with system solutions. Emissions legislation has made the expansion of our after-treat-ment product line a necessity. DEUTZ is responsible for the development, the test-ing and getting the certifications for these engine systems.

Continuous improvements and expansion are taking place in the service areas. Re-

the coming years. DEUTZ doesn't mind the stricter emission standards applicable to industrial nations in the years to come. The engines from Cologne not only com-ply with the new emission standards, but in some cases even exceed them. The "Sus-tainability" aspect determines the devel-opment of our new technologies. Hybrid solutions will increase in the coming years. With the support of the Federal Ministry for Economics and Technology DEUTZ ini-tiated the project GRID – Green Industrial Diesel in 2012. The aim of the project is: A hybrid drive system for a diesel engine and an electric motor was developed for the industrial markets; it decreases fuel consumption and CO2 emissions by up to 30 percent. At the construction trade fair "bauma" in the spring of 2013, the com-pany was able to display the first results of the project with the introduction of an industrial excavator with hybrid drive.

Strategic Programme through 2020

The expansion of our customer and prod-uct base and the further globalisation and internationalisation are part of the 2011 and 2012 revised strategy, which we will continue to pursue. Structural adapta-tions, taking on new and nurturing existing partnerships, are the permeating mea-sures designed to ensure the long-term and profitable growth of DEUTZ. In this context, DEUTZ will maintain the growth strategy which will strengthen the Cologne company future in three different ways.

1. Expanding the customer base and profitable growth opportunitiesThe largest market growth potential is still in Asia, unchanged in DEUTZ 's opinion, specifically in China. Distribution capac-ities there have been increased accord-ingly. The new generation engine markets in Europe and America receive intense attention from DEUTZ. Emphasising the many advantages of these engines – such as the compact installation dimensions, intelligent exhaust after-treatment con-cepts, lower life-cycle costs than previous models and much more.

The strategic focus will continue in the field of agricultural technology, because their business cycles are much more re-silient and less sensitive to the econom-ic ups and downs. The service business promises good opportunities to build on the successes and stable growth rates of the last years and to expand the market share of the existing engine population.

placement engines, marketed as DEUZT Xchange have significantly broadened the product range and have been introduced in the relevant markets. For example, DEUTZ is recycling an exhaust gas tur-bocharger in order to be able to offer a product to our more cost conscious ser-vice customers.

3. Globalisation and Internationalisa-tion in the DEUTZ GroupThe globalisation and internationalisa-tion strategy of the DEUTZ Group has addressed the switch in market focus in general and the growing trend toward assembly closer to the customer. DEUTZ is planning on restructuring in the three global economic areas of Europe, Ameri-ca and Asia to expand its activities in local assembly, procurement, logistics and ap-plication development beyond the current present sales and service offerings. These are to be strongly interconnected and centrally coordinated.

"Pioneering spirit, passion and innovative strength: Since we invented the internal combustion engine, we have continuous-ly improved it on a daily basis", just as it is stated in our mission. This is a claim the DEUTZ AG is planning on fulfilling into the future.

Global trends are driving engine growth – for the DEUTZ AG as well

Growing world population, increasing urbanisation and on-going globalisation: these global mega trends will remain unchanged. These developments are driving the demand for agricultural machinery, infrastructure investments and transportation options, and support

the continued growth of the global engine market, in particular in the emerging markets. At the same time re-

sources are becoming more scarce. The response are more and more regulations for environmental and climate protection

in virtually all industrial and emerging markets. This makes the emis-sion legislation the largest technology driver in the diesel-engine market. DEUTZ AG is more than willing to take on the challenges of the emission legislation and actually recognises the opportunities in it. As a rule, emission legislation in the emerging markets is at least one emission level behind. The new emission level DEUTZ engine systems are in that sense the structural growth drivers and invest-ments in the emerging markets. The global trends represent an attractive growth potential for the years to come for DEUTZ, despite its challenges and cyclic market environments.

IMPETUS AND PROSPECTS

33

IN BRIEF


In 1924, when the DEUTZ company began to celebrate its 60th an-niversary, the roaring twenties, (in Germany called the 'golden twen-ties'), had just begun: a brief period of economic boom, coupled with a blossoming of the arts, culture and science. This was during the first part of the 1920s and the years before that were anything but golden. They were marked by great poverty and distress and high unem-ployment. An employee of the Deutz AG engine factory considered himself very fortunate. However, at some point he had to pay a whop-ping 280,000 German Marks for one litre of milk, because, after the catastrophic economic situation Germany was hit with a enormous inflation rate. The total loss of the currency apparently could no longer be stopped. Later on a copy of the newspaper "Kölner Stadt-Anzei-ger" was to cost 350 billion Marks.

So if you wanted to buy a newspaper, you either had to go to the kiosk with a huge suitcase full money, which people didn't do for prac-tical reasons, or they availed themselves of the emergency currency, which was printed on a daily basis. Because its purchasing power fell very rapidly as well, banknotes with incredible nominal values of as high as 100 trillion Marks were brought into circulation towards the end of the hyperinflation. That is the number 1 with 14 zeroes behind it. But the owner of such a note was not wealthy at all. On the contrary: If you only had money and no property for bartering, one was worse off indeed. There was nothing more to be done: Germany was bankrupt, an entirely new currency had to be established. That happened in November 1923 and it was called the "Rentenmark". Then it started to go uphill again, and the "DEUTZ" employees had to have much less concern about making a living.

Did you know that...… 90 years ago the employees of the Deutz AG engine plant were paying 280,000 German Marks for one litre of milk?

DEUTZ AG · Ottostr. 1 · 51149 Cologne · Germany · Phone +49 (0) 221 822-0 · Fax +49 (0) 221 822-3525 · www.deutz.com · E-Mail: [email protected]

Each machine is only as good as its engine. Therefore, leading machine manufacturers

have chosen the latest cutting-edge technology from DEUTZ, be it in mobile machines,

agricultural equipment, ships propulsion or commercial vehicles applications.

For example this means that DEUTZ engines are installed into more than 100,000 new

mobile machines worldwide per year and one out of two pieces of airport equipment are

installed with DEUTZ engines and one out of three hectares of farm land in Germany is

cultivated with DEUTZ powered machines.

DEUTZ is one of the world‘s largest independent engine producers,with an integrated

power range from 25 to 520 kW. From the fi rst installation consultancy to the life-long

service support of the engine, we are completely dedicated to our customers.So that you

receive products and services to your satisfaction.

Each machine is only as good as its engine. Therefore, leading machine manufacturers

have chosen the latest cutting-edge technology from DEUTZ, be it in mobile machines,

agricultural equipment, ships propulsion or commercial vehicles applications.

For example this means that DEUTZ engines are installed into more than 100,000 new

mobile machines worldwide per year and one out of two pieces of airport equipment are

installed with DEUTZ engines and one out of three hectares of farm land in Germany is

DEUTZ is one of the world‘s largest independent engine producers,with an integrated

DEUTZ_Gesamtmotiv_ok.indd 2 08.04.14 10:44

Engineering

Deutz magazine