Hatz: Sweeping Realignment for the Future

Motorenfabrik Hatz GmbH & Co. KG is spinning off its precision machining operations into the newly established Hatz Components GmbH. The Hatz production facilities at the main plant in Ruhstorf an der Rott will remain the base of the company’s operations. Nothing will change for employees transferring to the new company other than the name of their employer.

Hatz management is taking this important step in order to guarantee “a future-proof and economically sustainable future for Hatz.” Hatz Components GmbH will start operating as an independent precision machining company on December 1, 2021. Past successes in this and other business fields will be extended and expanded under the new brand. The Components business field has written its own unique success story in recent years, and is now a mainstay of Motorenfabrik Hatz’s success, alongside Diesel Engines and Systems. 

Vehicle manufacturers are increasingly outsourcing component production

The Components business field produces high-precision metal components – particularly conrods and crankshafts – for sectors such as the international automobile and commercial vehicle industry and manufacturers of agricultural vehicles. Hatz believes these segments hold additional long-term potential for contract manufacturing, especially given the accelerating adoption of electric powertrains. Vehicle manufacturers are increasingly building electric powertrainsolutions in-house and are thus outsourcing the production of components for combustion engines. This reinforces and increases the demand for reliable partners with deep expertise and superior production quality such as Hatz Components.

Consistent continuation of positive developments

Hatz Components GmbH will begin operation as an independent company on December 1, 2021. Component production will remain in the current manufacturing facilities in Ruhstorf. Around 500 employees, or roughly half of all employees at headquarters, will be working for Hatz Components GmbH. All the machinery and other assets required for component production will also be transferred to the new company. “Ruhstorf will be the center of all core Hatz operations,” said Bernd Krüper, Chief Executive Officer of Motorenfabrik Hatz. The establishment of Hatz Components GmbH means that work and production processes will be consistently improved and adapted to value streams, while the portfolio will be sustainably aligned with future combustion engine requirements. These efforts intend to cut costs, increase flexibility, streamline operations and respond more specifically to the needs of automotive and off-highway customers. “This is the next logical step in the positive evolution of our components business. The spin-off focuses our business and increases transparency,” Bernd Krüper explained. “The new firm significantly helps the people at Hatz and the entire Hatz Group manage the business field individually and make it even more attractive for our customers and partners. This positioning – along with all our innovation projects and our technological leadership in compact engines and in analog and digital systems – makes us even more future-proof in the components sector,” said Bernd Krüper, CEO of Motorenfabrik Hatz. Hatz is expecting record sales in both component and engine production in the upcoming financial year.

The Hatz family supports project

The Hatz family, with all its members, is united behind this project: “Focusing on special market needs and the company’s future viability are key aspects of the Hatz family business’s value system. After 141 years of building engines and 41 years of manufacturing contract components, we are taking the next step of establishing Hatz Components GmbH as an independent company that produces high-quality components in Ruhstorf,” said Wolfram Hatz, the company’s main shareholder, Chairman of the Advisory Board and frequent brand ambassador.

Works council involved from the start

Nothing will change for the employees transferring to the new company except for the company name on their pay slips. Hatz’s management has stated that there are no plans to reduce staff or introduce a severance scheme in connection with the reorganization. All existing employment contracts, works and collective agreements will remain entirely unchanged for Hatz Components GmbH employees. The works council has been actively involved in the formation of the new company from the start of the planning process: “The powertrain and engine market has been changing for years. That is why the workforce is working on Hatz’s vision for the future – being an innovative, permanently successful company in Lower Bavaria. Establishing Hatz Components GmbH gives us the greatest possible security and continuity for our jobs. The fact that all existing contractual, works and collective agreements will be adopted unchanged shows that all of us Hatz employees belong to the same corporate group, even if we will be sailing under two different flags in the future,” said Gerhard Krottenthaler, Chairman of the Works Council of Motorenfabrik Hatz.

Umbrella brand continues to drive important developments

Meanwhile, the Diesel Engines and Systems business fields, which also operate under the Motorenfabrik Hatz umbrella brand, continue to advance the technological evolution of the powertrain portfolio and software-based solutions such as intelligent engine condition monitoring. Motorenfabrik Hatz GmbH & Co. KG is pursuing a long-term innovation strategy of technological openness and progressive emission reductions until its engines and systems are emission-free.