John Deere and Hitachi end manufacturing agreement
John Deere to acquire joint venture factoriesMachinery powerhouses, John Deere and Hitachi, have announced the termination of their 33-year long partnership in manufacturing and marketing construction machinery.
The joint venture will officially end on Feb 28, 2022, subject to regulatory approval. As a result of the agreement, the following changes will apply:
- John Deere will acquire the Deere-Hitachi joint-venture factories in Kernersville, NC; Indaiatuba, Brazil; and Langley, British Columbia, Canada.
- John Deere will continue to manufacture Deere-branded construction and forestry excavators currently produced at the three Deere-Hitachi factories. These locations will discontinue production of Hitachi-branded excavators.
- John Deere's marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas will end.
- Both companies will assume distribution and support for their own products.
Although the official joint venture will end early next year, both parties have entered new license and supply agreements which will see Hitachi Construction Machinery provide John Deere with OEM supply of Deere branded mini excavators and completed hydraulic excavators of the current lineup, as well as components and service parts to Deere’s manufacturing and distribution bases in the United States and in Brazil for the foreseeable future.
“For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas," said John Deere Construction & Forestry Division and Power Systems president, John Stone.
"As we turn the page to a new chapter of Deere-designed excavators, we remain committed to supporting our customers of today and tomorrow.
"Looking to the future, John Deere will build on our legacy of quality and productivity and accelerate development of industry-leading technology and machinery that answers the fundamental need for smarter, safer, and more sustainable construction so our customers can shape tomorrow's world."
John Deere and Hitachi began a supply relationship in the early 1960s; then in 1988 the companies started the Deere-Hitachi manufacturing joint venture to produce excavators in Kernersville, NC.
In 1998, Deere-Hitachi expanded the relationship to include the production of forestry swing machines at Deere-Hitachi Specialty Products in Langley, BC.
In 2001, John Deere and Hitachi combined their marketing and distribution efforts in the Americas and in 2011, excavator manufacturing was expanded with the addition of the Deere-Hitachi Brazil factory in Indaiatuba, Brazil.
In Australia, the distribution of John Deere construction equipment was handled by Hitachi Construction Machinery Australia (HCA) until 2019, when both parties decided to end their 29-year long distribution agreement.
Since then, the distribution of John Deere equipment has been handled by RDO Equipment for New South Wales, Victoria, Queensland, South Australia, Tasmania, and the Northern Territory; while AFGRI took over distribution in Western Australia.
Tags
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.