In a move designed to improve the speed of decision-making and customer support, Hitachi Construction Machinery Co., Ltd. and Deere & Company will integrate their marketing operations in North, Central, and South America, the companies said today. The integrated operation will have responsibility for sales and distribution of the Hitachi and Deere brands of construction, forestry, and mining equipment and solutions in the Americas.
Currently, the Hitachi-branded hydraulic excavators and mining equipment are marketed by wholly owned subsidiaries of Deere-Hitachi Construction Machinery Corporation, the 50/50 joint venture formed by Deere and Hitachi in 1988. Deere-branded hydraulic excavators are currently marketed by the Construction & Forestry division of Deere & Company. The Deere-Hitachi joint venture, located in Kernersville, NC, will continue to produce hydraulic excavators for the North, Central, and South American markets.
“This strategic initiative is yet another step to strengthen the Hitachi and Deere business relationship,” “Hitachi and Deere will continue to look for opportunities to improve operating efficiencies and add customer value.” < Ryuichi Seguchi, president of Hitachi Construction Machinery.>
“Hitachi and Deere are committed to providing a quality product and competitive pricing to our respective customers” “This collaboration will enable both organizations to more effectively compete in North, Central and South America.” < Pierre Leroy, president of Deere’s Worldwide Construction & Forestry Division.>
Under the plan, marketing operations for Hitachi-branded products in Houston, Toronto, and Vancouver will be closed and integrated into Deere’s construction and forestry marketing operations in Moline, Illinois. Deere-Hitachi Specialty Products, a subsidiary of Deere-Hitachi also located in Vancouver, is not affected by this announcement.
The companies said that integrating the marketing and support functions would enable the use of best practices to support and grow both the Deere and Hitachi brands of equipment. In the integrated organization, the companies will use common parts distribution, information systems, and training and support programs, enabling Deere and Hitachi to provide more value to customers.