Deere And Hitachi To End Joint Venture

posted on Monday, February 14, 2022 in Blogs

John Deere and Hitachi will end their Deere-Hitachi Excavator joint venture on February 28, 2022.

As a result, the following changes will take effect on March 1, 2022:

  • John Deere will acquire the Deere-Hitachi joint venture factories in Kernersville, NC; Indaiatuba, Brazil; and Langley, British Columbia. These factories will be wholly owned by John Deere. These acquisitions, coupled with intellectual property also purchased, will allow the factories, their supply chains, production processes and teams to continue with minimal disruption.

  • John Deere will continue to manufacture Deere-branded construction and forestry excavators currently produced at the above-noted world-class factories. These locations will discontinue the production of Hitachi-branded excavators.

  • John Deere and Hitachi have entered into a long-term supply agreement in which specific Deere-branded excavator models will be manufactured by Hitachi and sold in the Americas. This agreement enables Deere to continue offering the full portfolio of Deere-branded excavators in the Americas.

  • John Deere’s marketing arrangement to distribute Hitachi-branded construction, compact and forestry excavators, as well as mining equipment, through John Deere dealerships in the Americas will end. Hitachi will assume distribution for these Hitachi-branded products.

  • Specific to CL Boyd, this means CL Boyd will no longer be a Hitachi dealer beyond February 28, 2022. Hitachi will establish their own dealer network to sell and support Hitachi-branded products.

  • While CL Boyd will not be an official Hitachi dealer beyond February 28, 2022, they will retain the ability to support the Hitachi-branded machines sold during their time as a Hitachi dealer. This is due to an agreement between Deere and Hitachi to ensure parts availability and technical support, for many years into the future, so CL Boyd can support customers that bought Hitachi-branded machines during their time as an official Hitachi dealer.

As we have done for years, John Deere and CL Boyd stand committed to serving our customers with high-quality products they’ve come to expect. Additionally, we stand ready to support customer excavator fleets, both Deere and Hitachi, with the parts and service needed to keep jobsites running productively and efficiently for years to come.

And as we look to the future, be assured John Deere will build on its legacy of quality and productivity while accelerating the development of industry-leading technology and machinery that answer the fundamental need for smarter, safer and more sustainable construction so our customers can shape tomorrow’s world.

For further information, you can contact us at 405-942-8000.