John Deere, Hitachi to end joint-venture agreements

John Deere and Hitachi Construction Machinery ended their Deere-Hitachi joint-venture manufacturing and marketing agreements.

The two companies began a supply relationship in the early 1960s, according to John Deere, and combined their marketing and distribution efforts in the Americas in 2001.

The partnership expanded throughout the U.S. and nationwide until as recently as 2011, when Deere-Hitachi added a factory in Indaiatuba, Brazil.

The companies will enter into new license and supply agreements that will allow John Deere to continue to source, manufacture and distribute the current lineup of Deere-branded excavators in the Americas.

“For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas,” says John Stone, president of John Deere’s construction and forestry division and power systems. “As we turn the page to a new chapter of Deere-designed excavators, we remain committed to support our customers of today and tomorrow.”

Under the new agreement, beginning in February 2022, John Deere will acquire the Deere-Hitachi factories in Kernersville, North Carolina; Indaiatuba, Brazil; and Langley, British Columbia, Canada.

The company will also 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, while John Deere will continue to offer a portfolio of excavators through a supply agreement with Hitachi.

Finally, 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.

“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,” Stone says.