The company was founded by Nikolaus Otto, inventor of the four-stroke internal combustion engine.

Deutz once also produced agricultural machines like combines and tractors as well as commercial vehicles such as lorries and buses. (In 1995 Deutz sold the agricultural machinery division-called Deutz-Fahr- to SAME, an Italian company, which formed SAME Deutz-Fahr then.) Deutz's head office is in the Porz district of Cologne and as of 2004 was manufacturing liquid and air-cooled diesel engines. The larger engines in the Deutz range were manufactured in Mannheim, at a production facility that once belonged to a company called MWM. Deutz also have production facilities in other countries including Spain and a joint venture production facility in China. After Deutz took over, the plant specialised in marine engines. This facility now produces engines for marine and power generation which can run on either fuel oils or fuel gases (including landfill gas).