Deutz CEO Sebastian C. Schulte outlines benefits of FFG purchase

Dr. Sebastian C. Schulte, CEO of Deutz, has taken the unusual step of issuing a public post on LinkedIn to explain why the German engine and power specialist has decided to purchase military vehicle manufacturer FFG Flensburger Fahrzeugbau Gesellschaft.

According to Schulte, for people following the transformation at Deutz from a manufacturer of internal combustion engines to a company expanding into various sectors of the power industry – which has included the 2025 purchase of battery manufacturer Urban Mobility Systems – “it was the logical next move.”

“We were never vague about where the growth would come from. We named two arenas from the outset: decentralized energy supply, and defense. Both are areas where the world is changing fundamentally, and where our engineering DNA – reliable power under extreme conditions, at altitude, underground, in heat and cold – is genuinely differentiating. In other words, areas where we have not just a right to play, but also a right to win.”

FFG WiSENT military vehicle (Photo: FFG)

Schulte noted that Deutz has been an engine supplier to companies producing military vehicles in the past, but “…in a rather opportunistic than strategic way.”

In one such case, Deutz has supplied its BF 6M2013C six-cylinder diesel engine for use in the joint German-Dutch Fennek reconnaissance vehicle.

Schulte further highlighted how FFG has grown as a company, starting as a maintenance, repair and overhaul partner for NATO militaries to then develop and manufacture its own vehicle platforms. This, he says, is “rare and valuable.”

As suspected when the original announcement of the FFG purchase by Deutz was covered by Power Progress earlier this year, Schulte effectively outlines how the defense vehicle manufacturer will incorporate engines and other power tech supplied by Deutz. This, while also benefitting from the engine OEM’s experience in industrial scaling.

“Put those two together and you create a leading national systems provider for military vehicles, drive systems and energy solutions,” he wrote. “Not a component supplier hoping to be specified into someone else’s program, but a partner than can integrate, industrialize and service complete solutions over their entire lifecycle.”

But beyond engines, Schulte believes that all areas of the business will benefit from the acquisition of FFG, including service, the New Tech division and also energy solutions, including decentralized power.

According to Schulte, the purchase of FFG will accelerate the Deutz Group’s profitable growth, with the company reaching €4 billion in revenue at a 10% EBIT margin ahead of its 2030 target date.

Lastly, Schulte mentions the bigger picture, or “the ability of democratic states to defend themselves.” He points out that rapidly scalable production capacity at both Deutz and FFG “can make a real contribution to the defense capabilities of Germany and Europe.”

Considering the current conflict in Ukraine, effectively next door to Europe, it is pragmatic and at the same time somewhat dystopian to consider that the better a company such as FFG does, the worse it might be for Europe’s security. But when warmongering is rampant, it would be foolhardy not to make preparations.

Click here to see the full post by Schulte (LinkedIn sign up/registration might be required).