Germany’s Renk Group Seeks To Revitalize An Iconic American Defense Manufacturer

When does the foreign acquisition of a longtime U.S. defense supplier make for good news? According to the leaders at the newly minted Renk America, their recent purchase by a German company is a very good thing. The former L3Harris Technologies Combat Propulsion Systems in Muskegon, Michigan, became the headquarters and main production facility for Renk America in early July, when Germany-based Renk Group completed its purchase. The plant produces transmissions and engines for a variety of military vehicles, including the Bradley Fighting Vehicle and the M88 Recovery Vehicle. The deal also included the acquisition of the Magnet-Motor business in Starnberg, Germany, maker of hybrid drive solutions for protected vehicles and Navy vessels. Renk America will officially unveil itself at the Association of the U.S. Army’s 2021 Meeting & Exposition in October.

“Renk is a global company,” said Renk America’s CEO Ted Trzesniowski. “They give us a much greater opportunity to offer our existing products to allied nations internationally.” Trzesniowski, who had served as General Manager in Muskegon for two years prior to the deal, obviously sees great value in that. An immigrant from Poland, he left behind a 14-year tenure with L3Harris when he chose to continue to lead the new American arm for Renk.

Renk Group was founded in 1873, and makes gear units, automatic transmissions, bearings, suspension systems and couplings for the defense, civil marine, energy production, plastics, and oil and gas industries. The company has more than 3,000 employees worldwide, and generates annual sales of around $940 million.

At the Muskegon facility, the excitement about what the new owners bring is palpable. The site has nearly 400 employees, many of them military veterans. It also boasts a long and proud history in both civilian and military propulsion applications. Its earliest roots go back to a small Chicago-based engine maker, the Autocar Equipment Company, founded in 1904. A year later the company relocated to Muskegon. Early contracts were for engines for the Studebaker Wagon Company of South Bend, Indiana, and the Hudson Motor Car Company of Detroit.

In 1917, the company became Continental Motors Corporation (CMC), a name that would stick around for more than 40 years and would become part of Muskegon’s DNA. That year also saw America’s entry into WWI, leading to the company’s first involvement in defense applications, with its production of engines for two military transport trucks.

The interwar years saw CMC solidify its position with the growing automakers in Detroit. When the Great Depression hit, the company diversified, supplying motors for boats, buses, tractors and trucks, as well as elevators, ore crushers, cranes and concrete mixers. CMC also went into the aviation business, eventually developing a radial motor that would play a tremendous role in its growth, as it became a linchpin in the development of both airplanes and tanks in the leadup to WWII.

That war would cement CMC as a defense industry mainstay. The company’s engines would power tanks including the M3 General Lee and the M4 Sherman, landing craft like the Higgins Boat, and heavy prime movers like the M5 high-speed tractor. The company established its Continental Aviation and Engineering (CAE) division in 1940. Its engines went into several reconnaissance and artillery-spotting light aircraft, while contracts with Pratt & Whitney and Rolls Royce saw the company producing the Wasp engine that powered the North America AT-6 and SNJ trainers, and the Merlin engine that powered the P-51 Mustang fighter. By 1944 some 11,000 workers were employed in Muskegon.

In the postwar years, the company would continue to develop new capabilities in armored vehicles, transports, marine applications and aerospace for the military, along with a variety of civilian heavy machinery and marine motors. But beginning in the 1960s, a series of ownership changes and military budget ups-and-downs would create significant production volatility, and a severe business decline in Muskegon. CMC would be purchased by Ryan Aeronautical Company in 1965, which was then acquired by Teledyne, Inc., in 1969. That was bought by General Dynamics Land Systems Inc., a division of General Dynamics Corporation, in 1996. Eventually the Muskegon facility would be sold to L3 Communications Holding Inc. in 2005, becoming the Combat Propulsion Systems (CPS) subsidiary.

What later became L3Harris Technologies is a rock-solid company, with 48,000 employees over $18 billion in annual revenue. But the former CPS was never a good fit with it. “Believe me, I’m not criticizing L3,” said Corey Johnson, Renk America’s Director of Business Development. “It’s a great company. But L3 is about satellites, tech, radio and missiles, not about cutting metal to make transmissions and motors. Our business is a great fit for Renk, and we’ll play a much bigger part–Muskegon will make up around 25% of the company’s revenue. You won’t find a single person here who isn’t happy with the acquisition.”

The focus for now in Muskegon will continue to be on the business that’s solidified there over the past few decades, manufacturing new motors and drives for armored vehicles, including the aforementioned Bradley, the M109A7 Self-Propelled Howitzer, and the M60 Main Battle tank, which is used by allies worldwide. The company also refurbishes drives and motors that have seen heavy action in the field, returning them to new condition. “Two-thirds of our transmission business is upgrades and overhauls of units returned from the field,” explained Johnson. The overall goal is to eliminate finger-pointing that often occurs between different defense contractors by having a single source for combat mobility solutions.

Part of the excitement in Muskegon is about planned growth. In addition to more opportunities internationally for Renk America’s existing products, there are already firm plans for the site to add capabilities to produce legacy Renk Group products. “The best analogy I can make is that the U.S. business we’re well-known for is like Ford, solid and dependable,” Trzesniowski said. “The Renk technology is more like BMW–more sophisticated and more expensive. We’re bringing that technology to the U.S., to our warfighters, to insert immediately into the U.S. market. It’ll be more competitive because we’ll make it in Muskegon, and fill up empty factory space. Our total costs will come down, and we can invest in the building, in our machining operations, and in R&D along the way.”

The combined company is looking to the future as well. “Electrification, hybrids and AC power are all opportunities,” said Johnson. “We’re the only manufacturer already building transmissions, engines and hybrids under one roof. Combined with the suspension solutions of our Horstman group company, we can even offer complete combat propulsion systems. This makes us unique.”

In the meantime, the Muskegon plant and headquarters will continue the community involvement and support for veterans that have long been core values. “We have over 50 people who are veterans working here,” Trzesniowski said. “They’re working not just for a paycheck, but for the mission. They understand that people’s lives are on the line, and the reliability of what they make is critical in a hostile environment. Muskegon has a great military history, and we have employees where three generations of the same family work here together.” The company supports local veterans’ activities, and recently funded Operation Black Sheep, which refurbished a Vietnam-era PBR (Patrol Boat, River). Robert Bowyer, Renk America’s Business Development Representative who served in Afghanistan, headed up the project. “That boat wouldn’t be on the water if it weren’t for the company’s support,” he said.

For Trzesniowski, building the business, supporting veterans, and contributing in the community all go hand-in-hand. “What’s good for our business is good for Muskegon,” he explained. “The participation here locally is far beyond what I’ve seen in other locations around the country, and around the world. It’s because we believe in what we do.”