PRESS RELEASE
Corporate
Series 2000 and 4000 genset business booming
Posted on May 29, 2001
The introduction of the new Series 2000 and Series 4000 engines in 1997 has completely turned around the genset business for mtu. What was previously a niche sector for specialized solutions has developed into a respectable volume business.
Friedrichshafen. The introduction of the new Series 2000 and Series 4000 engines in 1997 has completely turned around the genset business for mtu. What was previously a niche sector for specialized solutions has developed into a respectable volume business. The number of ordered engines increased in 1999 to over 1300 and in 2000 to more than 3100. Of the Series 2000 and 4000 engines produced this year, 70 to 80% are earmarked for gensets.
This success is generated by cost-conscious production and the resulting competitive pricing. The price alone though does not create a market success. Extensive selling policy measures were taken by the Sales Center for Energy before the orders started coming in. This included new-product-familiarization courses and intensive training of the sales people. The underlying strategy was to seek customers where mtu had previously been scarcely represented. With the new image of a manufacturer of cost -optimized engines, customers could be acquired who had previously chosen competitors' products because of price considerations.
Success was inevitable; especially in Turkey and Asia but also in France, England, Italy, the Netherlands and Germany there was an enormous increase in orders. A profitable sector for mtu was the large number of new internet companies demanding no-break stand-by gensets. Exports profited at the same time because of the low euro rate, which had a special meaning in the Asian market, bringing competitive advantages against American manufacturers. In addition, the Asian countries developed with over-proportional growth rates after weathering the economic crisis. mtu was able to sell around 700 engines in this region.
A concept was created in the Sales Center for Energy for servicing the future genset market. This includes middle-term storage of standard genset engines at various locations. This allows speedy shipment - a decisive competitive advantage in addition to short delivery times, dependable technology and reliable product support.
This success is generated by cost-conscious production and the resulting competitive pricing. The price alone though does not create a market success. Extensive selling policy measures were taken by the Sales Center for Energy before the orders started coming in. This included new-product-familiarization courses and intensive training of the sales people. The underlying strategy was to seek customers where mtu had previously been scarcely represented. With the new image of a manufacturer of cost -optimized engines, customers could be acquired who had previously chosen competitors' products because of price considerations.
Success was inevitable; especially in Turkey and Asia but also in France, England, Italy, the Netherlands and Germany there was an enormous increase in orders. A profitable sector for mtu was the large number of new internet companies demanding no-break stand-by gensets. Exports profited at the same time because of the low euro rate, which had a special meaning in the Asian market, bringing competitive advantages against American manufacturers. In addition, the Asian countries developed with over-proportional growth rates after weathering the economic crisis. mtu was able to sell around 700 engines in this region.
A concept was created in the Sales Center for Energy for servicing the future genset market. This includes middle-term storage of standard genset engines at various locations. This allows speedy shipment - a decisive competitive advantage in addition to short delivery times, dependable technology and reliable product support.