John Deere and Hitachi will end their decades-long joint venture in early 2022, shaking up the marketing and manufacturing of the two company’s excavators. Deere will continue to “source, manufacture, and distribute” its current lineup of Deere-branded excavators. Hitachi moves under the management of Hitachi Construction Machinery Loaders America (HCMA), a wholly owned subsidiary of Hitachi Construction Machinery Group.
HCMA will assume all product and service operations in the Spring of 2022 and will introduce new machines to the North American market, according to CEO Alan Quinn.
“HCM, through HCMA, will be able to better determine its own destiny in the Americas with its own business strategies, improved products and services, and updated technologies, all provided through a revamped and strengthened distribution network,” he said in a prepared statement.
All wheel loaders, excavators, and mining equipment will continue to be manufactured in Japan, although the company said it “will continue to evaluate this supply structure for the future to evaluate the possibilities for production in the Americas.”
John Deere will acquire JV factories in Kernersville, North Carolina; Indaiatuba, Brazil; and Langley, British Columbia, Canada, where it will continue to manufacture Deere-branded excavators. Hitachi excavators will not longer be produced in these factories, and Deere will continue to offer a full portfolio of excavators through a supply agreement with Hitachi.
Its marketing arrangement with Hitachi will end.
Said John Stone, Deere president, in a prepared statement:
“For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas. 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.