Origins and Early Development

The story of Sauer Danfoss begins with two separate companies with rich histories in hydraulic innovation. Sauer-Sundstrand, originally founded in 1946 in Neumünster, Germany, as Sauer & Sohn, initially specialized in manufacturing hydraulic components for the emerging European market after World War II. Meanwhile, Danfoss, established in 1933 by Mads Clausen in Nordborg, Denmark, began as a valve manufacturing company before expanding into hydraulic components.

Both companies grew independently throughout the post-war industrial boom, establishing reputations for quality and innovation in hydraulic technology. Sauer became known for its axial piston pumps and motors, while Danfoss developed expertise in orbital motors and steering units that found applications in agricultural and construction equipment.

The Merger: Creating a Hydraulics Powerhouse

The defining moment in the company’s history came in 2000 when Sauer-Sundstrand and the Mobile Hydraulics Division of Danfoss merged to form Sauer Danfoss. This strategic combination created one of the world’s leading manufacturers of engineered hydraulic and electronic systems for mobile equipment.

The merger represented more than just a business transaction—it was a combination of complementary technologies and geographical strengths. Sauer brought its expertise in heavy-duty hydrostatic transmissions and open-circuit products, while Danfoss contributed its strengths in orbital motors, steering components, and electronic controls. Geographically, the merger united Sauer’s strong presence in North America and Europe with Danfoss’s established markets in Europe and emerging presence in Asia.

Innovation and Expansion Under Sauer Danfoss

Throughout the 2000s, Sauer Danfoss experienced significant growth and technological development. The company focused on several key innovations:

  1. Integrated Electronic Solutions: Recognizing the growing importance of electronic controls in hydraulic systems, Sauer Danfoss pioneered the development of integrated electrohydraulic systems that combined traditional hydraulics with sophisticated electronic control capabilities.
  2. PLUS+1™ Platform: One of the company’s most significant innovations was the introduction of the PLUS+1™ platform in 2004, a comprehensive system for machine management that included controllers, displays, joysticks, sensors, and programming software. This platform revolutionized how OEMs designed and implemented control systems for mobile equipment.
  3. Global Manufacturing Expansion: The company established manufacturing facilities in emerging markets, particularly China and India, to serve both local markets and global supply chains.
  4. Application-Specific Solutions: Rather than offering only components, Sauer Danfoss developed complete system solutions targeted at specific applications in agriculture, construction, material handling, and other industries.

During this period, Sauer Danfoss weathered significant challenges, including the global financial crisis of 2008-2009, which severely impacted the mobile equipment market. Despite these challenges, the company maintained its commitment to research and development, positioning itself for recovery when markets improved.

The Danfoss Power Solutions Era

The next major chapter in the company’s history began in 2013 when Danfoss A/S, which already owned approximately 76% of Sauer Danfoss, acquired the remaining shares and fully integrated the company into its corporate structure. The business was renamed Danfoss Power Solutions, marking the end of the Sauer Danfoss brand but continuing its technological legacy.

Under Danfoss ownership, the former Sauer Danfoss operations became a core part of Danfoss’s strategy for addressing growing global markets in electrification, digitalization, and energy efficiency. The company expanded its product portfolio to embrace hybrid and electrification technologies while maintaining its traditional strengths in hydraulic systems.

Key Technological Contributions

Throughout its history, Sauer Danfoss made several significant contributions to mobile hydraulic technology:

  1. Closed-Circuit Hydrostatic Transmissions: These systems revolutionized the way power is transmitted in mobile equipment, offering infinitely variable speed control and improved efficiency compared to mechanical transmissions.
  2. Proportional Valve Technology: Advanced valve systems that provided precise control of hydraulic functions, essential for improving both operator control and machine productivity.
  3. Displacement Control: Innovations in pump and motor control technology that allowed for more precise regulation of hydraulic power, improving both performance and efficiency.
  4. Integrated Circuit Design: The company pioneered integrated hydraulic circuits that combined multiple functions in compact, efficient packages, reducing installation complexity and improving reliability.
  5. Electronic Control Systems: The integration of sensors, controllers, and software that transformed hydraulic systems from purely mechanical devices to intelligent, adaptive systems capable of optimizing performance for specific operating conditions.

Legacy and Influence on Modern Mobile Equipment

Although the Sauer Danfoss name no longer exists as a corporate entity, its technological legacy continues to influence modern mobile equipment. The company’s innovations are found in countless applications:

  • Modern agricultural machinery with precision hydraulic control systems
  • Construction equipment with advanced operator interfaces and control systems
  • Material handling equipment with sophisticated load-sensing hydraulics
  • Forestry equipment with environmentally friendly hydraulic systems
  • Road building machines with precise control of working implements

The company’s PLUS+1™ platform continues to evolve under Danfoss Power Solutions, providing OEMs with powerful tools for machine control and monitoring.

Lessons from the Sauer Danfoss Story

The history of Sauer Danfoss offers several important business lessons:

  1. Strategic Mergers Can Create Market Leaders: The combination of complementary technologies and market presence can create organizations stronger than their individual parts.
  2. Innovation Drives Sustainable Growth: Throughout economic cycles, Sauer Danfoss maintained its commitment to research and development, ensuring its continued relevance in evolving markets.
  3. System Integration Creates Value: By moving beyond components to offer integrated systems, the company was able to capture more value and develop deeper relationships with OEM customers.
  4. Adaptation Is Essential: The company’s evolution from purely mechanical hydraulic systems to integrated electrohydraulic solutions demonstrates the importance of adapting to technological change.

Conclusion

The history of Sauer Danfoss represents an important chapter in the development of modern mobile equipment. From its origins in post-war Europe to its global presence at the time of its full acquisition by Danfoss, the company consistently demonstrated technological leadership and market responsiveness.

Today, under the Danfoss Power Solutions identity, the technologies, expertise, and customer relationships developed during the Sauer Danfoss era continue to evolve and adapt to changing market demands. The legacy of innovation established during the company’s history remains a foundation for addressing the challenges of electrification, automation, and efficiency in mobile equipment applications.

As industries increasingly focus on sustainability, efficiency, and smart technology integration, the pioneering work done by Sauer Danfoss in combining hydraulic power with electronic intelligence continues to influence how modern mobile equipment is designed and operated—a testament to the enduring impact of the company’s technological vision.