Dissolution of the Joint Venture with Deere & Company and the Go Forward Business Strategies in North, Central and South America
Hitachi Construction Machinery to commence sales and service independently in the Americas under the slogan: “REPUTATIONS ARE BUILT ON IT”
Tokyo, March 1, 2022 –Hitachi Construction Machinery Co., Ltd (headquarters: Taito-ku, Tokyo, President and Chief Executive Officer: Kotaro Hirano) (“Hitachi Construction Machinery”) and Deere & Company (headquarters: Moline, Illinois, United States of America, Chairman and Chief Executive Officer: John C. May) (“Deere”) have agreed in August 2021, to terminate and dissolve the joint venture relationship in North, Central and South America. Hitachi Construction Machinery has terminated the joint venture with Deere as of February 28, 2022 as scheduled. Going forward, Hitachi Construction Machinery will supply Deere with whole goods excavators, components and parts under a new OEM supply agreement for the foreseeable future.
Since the parties have agreed to terminate and dissolve the joint venture relationship in August 2021, Hitachi Construction Machinery has been working on reorganizing its independent sales and service network in preparation for the commencement of sales and service on March 1, 2022.
On October 1, 2021, Hitachi Construction Loaders America Inc. (headquarters: Newnan, Georgia, United States of America), which has been in charge of the manufacture and sales of Hitachi brand wheel loaders in North America, was renamed as Hitachi Construction Machinery Americas Inc. (“HCMA”).
Concurrently, Sonosuke Ishii, Senior Vice President and Executive Officer and President of the Mining Group, has assumed the position as the head of Americas Division and Chairman and Director of HCMA, along with Masaaki Hirose, its Vice Chairman, and Alan Quinn, its CEO, to implement a system to enhance and strengthen the US-Japan collaborative relationship. Furthermore, Hitachi Construction Machinery Group is committed to launching its business in North, Central and South America, as demonstrated by the establishment of “Americas Business Expansion Support Office” within Hitachi Construction Machinery’s headquarters.
In November 2021, we shipped our excavators which will be the very first excavators to be sold through HCMA, from Tsuchiura Works to the North American market. These machines are equipped with a cutting-edge and highly efficient hydraulic system, AERIAL ANGLE designed to improve safety at work sites, and ConSite OIL service solution, as standard specifications. They arrived at HCMA on January 11, 2022. We have been training sales personnel since January 24, and have been preparing for the commencement of sale on March 1, 2022.
In addition, we have been shipping compact machines from Hitachi Construction Machinery Tierra (Koka City, Shiga Prefecture), service parts from Tsukuba Parts Center (Tsukuba City, Ibaraki Prefecture) and mining equipment from Hitachinaka-Rinko Works (Hitachinaka City, Ibaraki Prefecture) for delivery to our dealers across the United States and Canada.
Throughout this preparatory period, Hitachi Construction Machinery Group has promoted and worked under our slogan commonly shared in Japan and the United States: “EMPOWERING THE AMERICAS －THE LINEUP GROWS MORE POWERFUL”. We have successfully secured ample sales and service networks by entering into new contracts with dealers across North, Central and South America, multi-region dealers for mining equipment and small to intermediate dealers primarily for construction equipment.
On March 1, 2022, we will commence a campaign under the slogan “REPUTATIONS ARE BUILT ON IT”, a slogan we have been promoting ever since we began sales of Hitachi brand wheel loaders in North America. For instance, as demonstrated by the remarkable achievement of 85% contract signup rate for ConSite, our customers in North America have highly valued and accepted the cutting-edge service solutions provided by Hitachi Construction Machinery Group.
As shown in its midterm management plan “Realizing Tomorrow’s Opportunities 2022,” Hitachi Construction Machinery Group is focused on strengthening the value-chain business, providing in-depth solutions and building a corporate culture that can flexibly adapt to changes. We will pursue this business strategy worldwide including North, Central and South America and realize a stable growth.
Concept of Our “REPUTATIONS ARE BUILT ON IT” Campaign
Let’s talk about the way things are built these days.
Built bigger. Built faster. Built tougher. Built to perform unworldly feats.
All of that.
You can put just about anything on a machine now.
You can put all the bells and whistles on it.
You can put tracks on it. Lifts and racks on it.
You can put all sorts of tech, specs and attachments on it.
But what does it all mean?
All that matters… is what’s riding on it.
Entire industries are built on work.
Built on the backs of those putting it all on the line.
And that’s the only thing on our minds.
Putting RELIABLE SOLUTIONS where it matters most.
On our factory floors.
On our dealership lots.
And on your job sites.
We put our name on it.
We put our reputations on it.
All to protect yours.
- AERIAL ANGLE and ConSite are registered trademarks of Hitachi Construction Machinery.
- Other company names or product names are the trademark or registered trademark of such company.
- August 19, 2021
About Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer. The company engages in the development, manufacturing, sales, and service operations around the world for hydraulic excavators, wheel loaders, road construction machines, and mining machinery. Hitachi Construction Machinery is strengthening its focus on value chain businesses other than new machinery sales, such as parts and services, rentals, used equipment, and parts recycling, and is utilizing digital technologies to provide deeper solutions at all points of contact with customers. Hitachi Construction Machinery employs approximately 25,000 people worldwide. In fiscal year 2020 (ended March 2021), the consolidated sales revenue was ¥813.3 billion and the percentage of overseas sales revenue was approximately 75%. For details, visit the company’s website.
Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.