Hatz Realigns Component Business for the Future

“Ensuring the future-proof, economically sustainable positioning of Hatz's individual business areas” is the principle that has moved the company management to take this important step. Hence, on December 1, 2021, Hatz Components GmbH started operating as an independent company within the Hatz Group.

Over recent years, the Components division, which bundles all precision machining tasks, has already written a success story of its own and has become a central pillar of Motorenfabrik Hatz. From now on, the success of past years is to be perpetuated and expanded under the new brand, “Hatz Components”.

Vehicle manufacturers increasingly outsourcing component production

Hatz Components manufactures high-precision metal components (especially conrods and crankshafts for the non-captive market) for various industries, such as the international automotive and commercial vehicle industry and manufacturers of agricultural vehicles. The reorientation of automotive OEMs indirectly improves the prospects of component manufacturing. The focus of the automotive industry on electric powertrain solutions and the resulting reduction of internally produced combustion engine components pushes up the volume on the free market. Accordingly, the demand for reliable partners with profound expertise and superior production quality remains high. Happily, Hatz Components is well prepared to meet this demand.

Consistent continuation of positive developments

Since December 1, 2021, some 500 employees, i.e. roughly half of all employees at headquarters, have been working for Hatz Components GmbH. "Ruhstorf an der Rott is the center of all core Hatz operations," says Bern Krüper, Chief Executive Officer of Motorenfabrik Hatz. The foundation of Hatz Components GmbH will improve the focus of the work and production processes on specific value streams and the effective adaptation of the portfolio to future combustion engine requirements. The goal is to be able to accommodate the requirements of the various on-highway and off-highway customers in a more specific manner, to increase flexibility, to cut costs, and to streamline operations. "By means of this step, we follow up on the good performance of our components business. The foundation of the new company enables a more dedicated positioning of our business and increases transparency," explains Bernd Krüper. "The newly founded company greatly assists the people at Hatz and the entire Hatz Group in managing the area more distinctively, making it even more attractive for our customers and partners. Along with our many innovation projects and our technological leadership in compact engines and analog and digital systems, this positioning makes us even more future-proof in the components sector," predicts Bernd Krüper, CEO of Motorenfabrik Hatz, who also manages the new Hatz Components GmbH. In the upcoming financial year, Hatz expects record sales, both in the field of components and in engine production, provided that this will be possible against the backdrop of the tense coronavirus situation and the associated supply bottlenecks.

Outstanding technological expertise

For existing customers who were already valuing the approach of Motorenfabrik Hatz GmbH as well as for potential new customers, the new company will deliver numerous benefits. The company is committed to customer orientation, high quality standards, and personal initiative. "As a supplier, we are well aware of the major challenges combustion engine-focused suppliers are confronted with, in view of the increasing concentration on electric powertrain solutions. However, in the context of reduced carbon emissions and on the path toward climate neutrality, we believe that it is important to be open to various technologies and also to further develop combustion engines. This is especially true when it comes to the use of alternative fuels, such as synthetic fuels or hybrid technologies. As a highly specialized partner, we are willing to intensify our strategic partnerships with customers whoare faced with the same sourcing challenges with regard to combustion engines. And of course, we will continue to supply our fellow Hatz combustion engine company Motorenfabrik Hatz according to its needs," says Kevin Unrath, Director Corporate Development and Marketing. "The newly founded company demonstrates our commitment to the component business, which, in combination with our expertise and know-how, makes us the ideal partner." This is evident from the 20+ awards we have received from renowned customers in recognition of our performance with respect to punctual delivery, quality, and many other criteria. Henceforth, Hatz Components GmbH plans on offering customers even more flexibility, shorter decision-making routes, and more intensive joint development throughout the entire product lifecycle.

Hatz family supports project

The project enjoys the backing of the Hatz family: “Focussing on special requirements in the market and the sustainability of the company are key facts in the social value system of the family business Hatz. Gaining 141 years of engine history and 41 years of experience in the non-captive components business, we now take the next step by founding Hatz Components GmbH as an independent legal entity to produce components at Ruhstorf.” says Wolfram Hatz, the company's main shareholder and Chairman of the Advisory Board, who often serves as brand ambassador.

Works council involved from the start

For the employees who have transferred to the new company, the founding of Hatz Components GmbH has not resulted in any change. 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 agreements, and collective labor agreements will remain unchanged for Hatz Components GmbH employees. From the start of the planning process, the works council has been actively involved in founding the new company.

Umbrella brand continues to drive important developments

Meanwhile, the "Engines and Systems" division, which also operates under the umbrella brand "Motorenfabrik Hatz", is driving the technological evolution of the powertrain portfolio and of software-based solutions such as intelligent engine status monitoring. Motorenfabrik Hatz GmbH & Co. KG is pursuing a long-term innovation strategy of technological openness and progressive emission reduction, which will culminate in a zero-emission portfolio of engines and systems.