Why Sauer-Danfoss Became
Danfoss Power Solutions
BY MIKE OSENGA
Thirteen years after the merger of Danfoss Fluid Power A/S and Sauer Inc. created Sauer-Danfoss Inc,. Danfoss Power Solutions
has been created via the merger of
Sauer-Danfoss and Danfoss.
The newly created (the merger was
official in mid-September) Danfoss
Power Solutions will be one of two
major operating segments of the
Danfoss Group. Niels B. Christiansen is
president & CEO of the Danfoss Group.
The Danfoss Climate & Energy
segment includes Refrigeration &
Air Conditioning Controls, Power
Electronics, Heating Solutions, Com-
mercial Compressors and District
Energy — the heretofore-established
portion of Danfoss.
The new Danfoss Power Solutions
segment will be headed by Eric Alström,
former Sauer-Danfoss president &
CEO, who will continue in that role for
the new mobile hydraulics operations.
The Danfoss Power Solutions busi-
ness segment will include Hydrostatics,
Work Function, Controls and the wholly
owned business units of Comatrol car-
tridge valves and HICs; Turolla gear
pumps and motors; Schwarzmüller-
Inverter electric inverter products; the
Valmova direct control valve (DCV)
business, as well as the majority-owned
joint venture company of Hydro-Gear
Now Danfoss, including the new
Danfoss Power Solutions, will be a
$6.1 billion privately held global man-
ufacturer with over 23,000 employ-
ees, 56 manufacturing operations in
18 countries and sales offices in 51
countries. Danfoss Power Solutions
had 2012 revenues of $1.9 billion.
Danfoss is headquartered in Nord-
borg, Denmark, while Danfoss Pow-
er Solutions is headquartered in
Neumünster, Germany, also Nordborg,
Denmark, and Ames, Iowa, in the U.S.
In separate interviews with Diesel
Progress, Christiansen and Alström
shed some light on the thinking and
strategy behind Sauer-Danfoss becoming Danfoss Power Solutions.
As to why the Sauer-Danfoss name
was changed to Danfoss Power Solutions, Christiansen noted, “In business-to-business a brand name has somewhat of a different meaning than in
the consumer markets. I think a lot of
our customers think exactly like we do.
If John Deere would acquire another
company, in the end they would probably call it John Deere.
“We would rather take our initiatives
and resources and focus them on one
really strong name. Plus, Danfoss has
been part of the Sauer-Danfoss name
for many years, so it is not like we
are going from one name to a totally
different name,” Christiansen added.
“Sauer-Danfoss was a strong brand
name,” Alström said. “However, I
have had opportunities to speak with
many of our customers about this,
OEMs as well as distributors, and
their reflection is similar to mine,
we’ve changed names four times over
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