Deutz predicts Tier 4 losers

By Steve Skinner19 June 2009

Deutz believes the cost of introducing Stage IV (final Tier 4) compliant engines will put some construction equipment manufacturers out of business. Speaking exclusively to iC, Robert Mann, senior vice president of sales, service and marketing said, "There are small customers that aren't going to make it through."

"Some of the small manufacturers are not really aware of what's coming," said Georg Diderich, senior vice president of corporate management. "With recession in 2008 and 2009 and no real light at the end of the tunnel in 2010, there isn't the availability of working capital to pre-buy Stage IIIA engines (an option available under flexibility provisions in the legislation) and Stage IIIB (Tier 4) will require equipment redesign which will place heavy demands on working capital."

Deutz is committed to helping smaller manufacturers through the situation but even now the company believes many don't fully appreciate the complexities ahead. "End users are being forced into technology that they cannot afford," said Mr Diderich. "We believe that engine costs for Tier 4 Interim will rise by a minimum of +15% and in certain cases considerably more," said Mr Mann.

Deutz, in the first instance, is trying to find solutions that avoid after-treatment wherever possible. "One aspect of this is the pursuit of hybrid technology, particularly in the light construction market," said Mr Mann. "Although this route might avoid the use of selective catalytic reduction (SCR) for Tier 4 Final, it will still impact heavily on machine design."

The company is looking to use hybrid technologies to reduce power outputs in order to fit below the legislative cut-off points of 19 kW, 37 kW and 56 kW. "Through this process we hope to bridge some applications back to non-emission controlled rated outputs, while enhancing the capability of the equipment through the high torque benefits of hybrid electric power," Mr Mann told iC.

"Although this offers an interesting solution, our primary driver in research and development is to manufacture engines that meet legislation and we're approaching this through both exhaust gas recirculation (EGR) with diesel particulate filters and SCR," said Mr Mann.

"Thanks to the flexibility of our Deutz variable emission reduction technology (DEVERT) we will offer a certain number of standard solutions for our small volume customers," confirmed Mr Diderich, "Although there will be no escaping cost increases for OEMs."
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