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.