![]() ![]() Today, the operation is responsible for the manufacturing of 13-47 metric ton excavators bearing both the Deere and Hitachi brands sold throughout North and South America. Five years later, 1988, the companies officially joined forces as Deere-Hitachi, a joint venture that combined Hitachi’s excavator design and technology with Deere’s customer support, parts, dealer network and-maybe most importantly-the then 150-year-old Deere brand.īoth companies split ownership of the JV 50/50 and over the years established three manufacturing facilities: the headquarters in Kernersville, North Carolina another focused on forestry machines in Langley, British Columbia and a third in Brazil serving as the manufacturing base for South American customers. In 1983, the companies entered a new supply agreement for excavators that saw Hitachi making whole machines bearing the Deere branding. At that time, the two collaborated through a supply agreement that saw Deere manufacturing undercarriage components for Hitachi excavators, while Hitachi made hydraulic components for Deere excavators. Though the formal joint venture between Deere and Hitachi started in the late 80s, the two companies’ working relationship actually stretches back to the 1960s. Or, what this relationship still is until March of 2022. Long history of collaborationīefore we get into the why and other questions, let’s nail down exactly what this relationship was. It’s just that the nature of the Deere-Hitachi joint venture was such that each company’s respective strengths were so deeply integrated and the work toward the success the companies found was so equally shared that untangling this ball of yarn will take time.īut why are they untangling to begin with? How will customers and their machines be impacted? A lot of it boils down to the growing importance of distribution in the equipment market. ![]() It's not that it's going to be messy-far from it. A couple of weeks back John Deere and Hitachi made a very big announcement regarding excavators.Īfter more than three decades of building excavators through a joint venture, the two have decided to dissolve the partnership and go their separate ways.īut-as is the case with the end of any relationship that goes back this far and has been so integral to the success of both companies within a given market-this dissolution won’t be a clean break. ![]()
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