Signaling a shift in both companies’ strategies as they approach an increasingly global equipment market, U.S. manufacturer John Deere and Japan's Hitachi Construction Machinery are dissolving their multi-decade joint venture to manufacture and sell Hitachi construction equipment in the Americas under the Deere brand, the two firms said Aug. 19.
In a $275-million deal, Moline, Ind.-based Deere will acquire three existing Deere-Hitachi factories in the Americas and secure licensing agreements for intellectual property necessary for continued production of the machines. Hitachi-designed equipment in the firms' joint venture—which includes a range of medium and large hydraulic excavators—will continue to be produced by Deere through at least 2022 and will be supported and serviced through its existing network. Terms of the deal take effect in February 2022.