Rolls-Royce takes action in battle for hearts and minds
Rolls-Royce has taken a number of steps to consolidate its position within the marine power systems market. In addition to an overhaul of the Tognum brands it acquired in 2011, it has also made advances on Wärtsilä, although the Finnish company has rejected the proposal.…
In a significant rebranding exercise Rolls-Royce Power Systems – a joint venture between Rolls-Royce and Daimler – has renamed Tognum AG 'Rolls-Royce Power Systems AG'. Tognum was purchased by the Rolls-Royce/Daimler vehicle – then operating under the banner of Engine Holding GmbH – in Summer 2011.
The Tognum portfolio comprises the superyacht engine behemoth MTU. And, according to The Superyacht Report’s business editor, Don Hoyt Gorman, “in terms of the brand most commonly seen on the cylinder heads of main engines in luxury yachts, MTU remains the market leader for now.” In Gorman’s Superyacht Intelligence Report on the engine market, which appeared in Issue 149 of The Superyacht Report he calculated that, of 4,131 superyacht engines delivered between 2003 and 2013, MTU provided 2,399 or 58.07 per cent, indicating the manufacturer’s predominance of the market.
There had been yet more market movement in the marine sector by Rolls-Royce, as it courted the Finnish power giant Wärtsilä, which produces medium-speed engines and plays a peripheral role in superyacht engine supply. But in a statement issued by the Wärtsilä board of directors, the advances were wholly rejected:
Wärtsilä Corporation notes the recent speculation about a potential transaction between Rolls-Royce Plc and Wärtsilä. We confirm the approach by Rolls-Royce with a preliminary proposal for a possible offer for the company. In case the company receives such proposals, the Wärtsilä Board has an obligation to evaluate such proposals. However, we confirm that there are no longer ongoing discussions with Rolls-Royce.
As part of the Tognum overhaul Tognum America will become MTU America Inc., whilst Singapore-based Tognum Asia Pte Ltd will become MTU Asia Pte Ltd. The core MTU brand however, will remain MTU Friedrichschafen. “The new name Rolls-Royce Power Systems reflects the close industrial ties to Rolls-Royce. At the same time, our owners Rolls-Royce and Daimler have clearly affirmed their commitment to our traditional brands of MTU, MTU Onsite Energy and L’Orange,” said Dr Ulrich Dohle, who has been chairman of the executive board and CEO of the company since July 2013.
The Tognum portfolio comprises the superyacht engine behemoth MTU. And, according to The Superyacht Report’s business editor, Don Hoyt Gorman, “in terms of the brand most commonly seen on the cylinder heads of main engines in luxury yachts, MTU remains the market leader for now.” In Gorman’s Superyacht Intelligence Report on the engine market, which appeared in Issue 149 of The Superyacht Report he calculated that, of 4,131 superyacht engines delivered between 2003 and 2013, MTU provided 2,399 or 58.07 per cent, indicating the manufacturer’s predominance of the market.
There had been yet more market movement in the marine sector by Rolls-Royce, as it courted the Finnish power giant Wärtsilä, which produces medium-speed engines and plays a peripheral role in superyacht engine supply. But in a statement issued by the Wärtsilä board of directors, the advances were wholly rejected:
Wärtsilä Corporation notes the recent speculation about a potential transaction between Rolls-Royce Plc and Wärtsilä. We confirm the approach by Rolls-Royce with a preliminary proposal for a possible offer for the company. In case the company receives such proposals, the Wärtsilä Board has an obligation to evaluate such proposals. However, we confirm that there are no longer ongoing discussions with Rolls-Royce.
As part of the Tognum overhaul Tognum America will become MTU America Inc., whilst Singapore-based Tognum Asia Pte Ltd will become MTU Asia Pte Ltd. The core MTU brand however, will remain MTU Friedrichschafen. “The new name Rolls-Royce Power Systems reflects the close industrial ties to Rolls-Royce. At the same time, our owners Rolls-Royce and Daimler have clearly affirmed their commitment to our traditional brands of MTU, MTU Onsite Energy and L’Orange,” said Dr Ulrich Dohle, who has been chairman of the executive board and CEO of the company since July 2013.
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