The brands and companies of the mtu Group are to operate under the name “Tognum” with immediate effect

Posted on July 12, 2006

The brands and companies of the mtu Group are to operate under the new name of Tognum GmbH with immediate effect.

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  • Strategic holding company above the companies with the brands mtu, Detroit Diesel, L’Orange, MDE, CFC Solutions and the Drive Shafts division
  • CEO of Tognum Volker Heuer: “The new name for the group ex-presses the tradition and strength of all our companies and brands, while maintaining their independent market presence”
  • Strategic focus on profitable growth and product leadership for propulsion systems and decentralized power systems

The brands and companies of the mtu Group are to operate under the new name of Tognum GmbH with immediate effect. Tognum will function as a strategic holding company for the companies with the globally established brands of mtu, Detroit Diesel, L’Orange, MDE, CFC Solutions and the Drive Shafts division. Despite their corporate links, the brands and individual companies will continue to operate independently in their markets. “The new name for our group combines the tradition and strength of all the companies and brands and safeguards their independent market presence,” explained the CEO of Tognum GmbH, Volker Heuer, who will continue to be the President and CEO of MTU Friedrichshafen GmbH. The other members of the management of Tognum GmbH are Joachim Coers, Dr. Gerd-Michael Wolters and Rainer Breidenbach. These persons will also continue to perform their current functions for MTU Friedrichshafen GmbH.

The new holding structure for the various brands and companies of the mtu Group is a result of separating the Off-Highway division from DaimlerChrysler AG. DaimlerChrysler, an automobile manufacturer domiciled in Stuttgart, announced the official closing of the sale of the division to the private equity fund EQT IV in March 2006.

The name Tognum was developed with the assistance of professional naming experts, and has been checked, registered and protected worldwide. It is an artificial name, combining distinctive elements from various languages and epochs. The name has a Germanic root (“tog”) and a Latin root (“um”), and is pronounced very similarly in the most widespread European languages. In its Germanic and old Scandinavian meaning, “tog” stands for “to pull with strength”, while the Latin suffix “um” signifies an important object or monument, and is to be found in names such as Colosseum or Forum. Furthermore, in old languages of northern and central Europe, “um” signified home or place of origin. Tognum therefore combines the strength and origins of its brands.

As a demonstration of togetherness and cooperation, Tognum GmbH will initiate an unusual venture within its group of companies: Employees from all of the companies are to construct a sailing boat together, to be completed by the spring of 2009. The boat will be named Tognum and will be launched to celebrate the 100th anniversary of the oldest company in the group, MTU Friedrichshafen. At an information event, Tognum CEO Volker Heuer handed over an important accessory to seven employees: a ship’s bell. At this ceremonial event, the four members of Tognum’s Board of Management symbolically hoisted a sail of nearly seven meters in height in the presence of the employees. The sail displayed the Tognum logo as well as the brand logos of all the companies in the new group.

As a strategic holding company domiciled in Friedrichshafen, Tognum GmbH will perform all corporate functions – including corporate strategy, finance, communication, planning and organization, and IT. Tognum CEO Volker Heuer explained: “In the new company’s management, the emphasis will be on lean structures, so that we can efficiently continue along the group’s growth path with attractive products, and so that we can continue strengthening the core competencies of our brands.” Key goals are product leadership for propulsion systems and power systems and profitable growth. “With our leading brands, we intend to offer our customers innovative end products and services,” stated Heuer, emphasizing Tognum’s industrial goals.

Following the corporate strategy developed at the end of 2004, which has now been adopted in unchanged form by Tognum GmbH, the companies of the mtu Group have made decisive progress in recent months. Following the consolidation of the existing divisions, the second phase now places priority on profitable growth: In January 2006, the company MDE in Augsburg, which specializes in decentralized power systems, was fully integrated into the mtu Group. Diesel-engine specialist mtu continues to set itself apart from the competition with repeated sales records, with the Series 2000 and Series 4000 for example, and also has a globally leading position in the market for propulsion systems and power systems.

mtu is currently developing the Series 1600, an additional innovative product that in the medium term will broaden the product range in the core business with diesel engines. This product passed an important technical milestone at the end of last week by successfully performing test-bench trials in Friedrichshafen.

As well as expending its product range, the company is also enhancing its organizational efficiency. In April 2006, the sales organization was realigned: Customers and markets are now served with clearly structured geographical market centers, using globally uniform standards for sales and service. Tognum CEO Volker Heuer stated: “This will significantly improve our customer focus and competitiveness.“

The internationalization of the group is also making rapid progress. In addition to its production locations in Friedrichshafen and Detroit, two weeks ago, mtu also started local assembly in Asia. At a new plant in Suzhou in the south of China, the Series 2000 engine is now being assembled for use in stationary power generators. The company has thus created optimal conditions to serve the lucrative market for decentralized power systems in China.

The Tognum Group is one of the world’s leading suppliers of diesel engines and complete propulsion systems for ships, heavy vehicles and trains, and decentralized power supply. The group employs more than 7,000 persons worldwide, and generated revenues of more than €2 billion in 2005.