Volvo extends Deutz contract

German engine manufacturer Deutz has extended a supply agreement that will see it continue to develop and supply diesel engines for Volvo.

Deutz has supplied Volvo with engines for its construction equipment since 1998 under a 15 year contract, but with this agreement due to expire in 2013, the two companies have signed a new contract that will come into effect in January 2014. Under the new agreement, Deutz will remain the sole supplier of diesel engines of between four and eight litres for Volvo construction equipment.

The agreement will see Deutz develop medium duty engines for Volvo that are Stage IV and Tier 4 Final compliant.

Deutz will also continue to supply engines that comply with Euro 3, 4 and 5 emissions standards for Volvo commercial vehicles.

Speaking of the new agreement, Chairman of Deutz, Helmut Leube said, "Volvo is one of Deutz's most important customers. We are proud of our successful cooperation and are delighted that we will continue to work together on a long-term basis."