Deutz completes sale of Torqeedo to Yamaha

Deutz has announced the completion of the sale of electric outboard and inboard motor manufacturer Torqeedo to Yamaha Motor Co., Ltd. (Yamaha). The transaction value was stated to be “a figure in the high double-digit millions of euros.”

Torqeedo’s limited edition Travel 903 motor. (Photo: Torqeedo)

Deutz acquired Torqeedo, a specialist for electric boat drives, in 2017 with the aim of accelerating the electrification strategy for its core customer segments, including construction equipment, agricultural machinery and material handling. It also sought to strengthen Torqeedo’s position as a technology and market leader in electric-powered water transport.

The sale of Torqeedo will provide the opportunity for Deutz “to double down on developing alternative drivetrains, focusing on areas where our expertise and know-how give us a head start,” said Dr. Sebastian C. Schulte, Deutz CEO, in a LinkedIn post announcing the sales completion. He cited the hydrogen engine that recently entered serial production as an example, noting that “many machines our engines power need to rely on combustion engine technology for the foreseeable future. But in a climate-friendly way.”

Continued expansion of its portfolio of electric drive systems is one of the key elements of Deutz’s Dual+ strategy presented at the start of 2023. The strategy seeks to grow the green product portfolio to enhance the company’s performance in its existing business with conventional engines and to significantly expand its current service business to provide the foundations for developing its technology portfolio for the future. The sale of Torqeedo will provide the proceeds to enable Deutz to move forward with these objectives.

“Torqeedo has found a new home with a strong industrial base that will enable it to achieve further dynamic growth,” stated Schulte in a press release announcing finalization of the sale. “For Deutz, this step represents a structured restart for the Green segment. We are freeing up resources so that we can forge ahead with the development of drive solutions that meet the market’s needs and the needs of our customers. Only by doing so will we ultimately be able to earn money with our green products and establish a profitable green ecosystem.”

This ecosystem, he added, will encompass products and technologies “that will be needed to keep the world moving in the future, including our state-of-the-art, hydrogen-powered internal combustion engines and our battery-electric off-highway products.”

Photo: Torqeedo

Move toward marine carbon neutrality

The closing of the share purchase agreement with Deutz also marks a milestone in Yamaha Motor’s Marine CASE Strategy 2024, which aims to achieve carbon neutrality in the marine industry and includes the development of an electric propulsion line.

“With Yamaha Motor, we have a strong strategic partner at our side to jointly advance electromobility on the water. This merger offers us new opportunities to strengthen our leading position in the growing market for electric boat motor systems and to shape the future of boating sustainably together,” said Fabian Bez, CEO of Torqeedo.

The acquisition marks Yamaha Motor’s entry into the dynamic electromobility market. By implementing its Marine CASE Strategy in 2024, Yamaha Motor is striving to increase its competitiveness and accelerate the decarbonization of shipping, the company stated. In the future, the Japanese company will utilize Torqeedo’s experience to meet the growing demand for electric and hybrid propulsion systems.

“Torqeedo’s years of expertise provide us with expert support in driving the electrification of our marine applications to make an important contribution to a zero-emission shipping industry,” said Toshiaki Ibata, senior executive officer, Chief Director of Marine Business Operations, Yamaha Motor.