John Deere - Hitachi End Joint Venture Manufacturing
John Deere heavy equipment made a significant announcement recently, revealing an agreement with Hitachi Construction Machinery that marks the conclusion of their joint venture manufacturing and marketing arrangements under Deere-Hitachi.

Hitachi Begins New Supply Agreements

In its place, John Deere and Hitachi are set to embark on new licensing and supply agreements, ensuring the continuity of the Deere-branded excavator lineup across the Americas.

With these new agreements in place, a series of changes takes effect on February 28, 2022, pending the necessary regulatory approvals.

  • John Deere took ownership of the Deere-Hitachi joint-venture factories located in North Carolina, Brazil and Canada.
  • John Deere will maintain the production of Deere construction and forestry excavators at these three Deere-Hitachi facilities. In contrast, the production of Hitachi-branded excavators will cease at these locations. John Deere will continue offering a comprehensive range of excavators through a supply agreement with Hitachi.
  • The marketing arrangement whereby John Deere handled Hitachi Excavators and mining equipment in the Americas will be discontinued, with Hitachi taking over distribution and product support responsibilities.
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Deere Dealerships No Longer Supply Hitachi Parts

This break-up effectively ends Hitachi's access to Deere's extensive dealer and distribution network, while Deere, in turn, wont capitalized on Hitachi's renowned design and manufacturing prowess. Notably, Hitachi ranks among the world's leading excavator manufacturers in terms of sales.

John Stone, President of John Deere's Construction & Forestry Division and Power Systems, reflected on the long-standing partnership, stating, "For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas."

Deere, Hitachi Break Supply Relationship

The collaboration between John Deere and Hitachi dates back to the early 1960s when they initially established a supply relationship. In 1988, they ventured into the Deere-Hitachi manufacturing joint venture, which focused on excavator production in Kernersville, NC. The partnership expanded in 1998 to include the manufacturing of forestry swing machines at Deere-Hitachi Specialty Products in Langley, BC. In 2001, John Deere and Hitachi joined forces in marketing and distribution efforts in the Americas. Subsequently, in 2011, the scope of excavator manufacturing grew with the addition of the Deere-Hitachi Brazil factory in Indaiatuba, Brazil. This agreement is contingent upon securing specific regulatory approvals and complying with customary closing conditions.

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