John Deere, Hitachi scale back cooperation

Moline, Illinois-based John Deere has announced it has agreed with Hitachi Construction Machinery to end the Deere-Hitachi joint venture (JV) manufacturing and marketing agreements. John Deere and Hitachi will enter into new license and supply agreements that will enable John Deere to continue to source, manufacture, and distribute the current lineup of Deere-branded excavators in the Americas, says that company.

In March 2020, heading into the 2020 ConExpo/Con-Agg event, a news release issued by the JV stated that visitors to the event “will notice orange Hitachi excavators side-by-side with yellow John Deere machinery. The co-branded booth is a visual representation of a one-of-a kind, three-decade long partnership that is a testament to the longstanding mutual respect and dedication of both companies.”

The 30-year alliance also was described as an “unbeatable partnership” that involved joint manufacturing facilities for construction excavators and forestry equipment, plus integrated marketing and parts distribution.

Going forward, the following changes will go into effect on Feb. 28, 2022, contingent upon regulatory approval, states John Deere:

• John Deere will acquire the Deere-Hitachi joint-venture factories in Kernersville, North Carolina; 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, but the locations will discontinue production of Hitachi-branded excavators. John Deere says it will “continue to offer a full portfolio of excavators through a supply agreement with Hitachi.”
• John Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas will end; Hitachi will assume distribution and support for these products.

"For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas," says John Stone, president of John Deere Construction & Forestry Division and Power Systems. “As we turn the page to a new chapter of Deere-designed excavators, we remain committed to supporting our customers of today and tomorrow.”

The Hitachi Construction Machinery – North America website does not yet have a press release offering details from the perspective of that business unit of Japan-based Hitachi Ltd.