Stuttgart, Germany – Daimler AG has purchased a majority share in Tognum AG, a supplier of off-highway engines used in agricultural equipment, cranes, power generation systems, pumps and marine applications.
Daimler has had a long-term supply relationship with Tognum, but sold its stake in the company at the end of 2005 due to numerous operational challenges. Following the sale, the two companies continued their traditionally intensive cooperation, with the Mercedes-Benz plant in Mannheim supplying more than 17,000 diesel engines and the Detroit Diesel Corporation plant in Detroit providing more than 5,000 diesel engines in 2007.
Tognum generates annual revenues of more than €300 million from sales of engines from Daimler, and an additional €160 million from sales of drive shafts to Daimler. The two companies are currently discussing the possible future supply of Daimler’s new medium-duty engine through Tognum.