For Deere & Hitachi, Breaking Up is Hard to Do

So, at the tail end of last year it was announced, that in a shock decision for the construction machinery sector in the United States, John Deere and Hitachi are set to dissolve their joint venture at the end of this month.

For over 30 years Deere and Hitachi have been manufacturing excavators in North and South America as part of a long-standing working arrangement between the two manufacturers which actually stems right back as far as the 1960’s.

Since the late 1980’s we have become accustomed to seeing Yellow Liveried John Deere hydraulic excavators which are of course badged Hitachi machines sold in the US alongside Hitachi orange models, with both brands having fiercely loyal and dedicated customers.

After February 28, Hitachi Construction Machinery Americas will stand on its own for distribution and sales of its brand excavators on the two continents. Hitachi plans to manufacture all of its excavators, as well as its wheel loaders and mining equipment, in Japan, and then import them to the North and South American markets.

John Deere is a massive brand in the US and I have often wondered why they have not re-entered the UK construction machinery market following their relatively short dalliance here in the 1970’s. Having said that, they did display some of their construction products, including Chinese built branded excavators during the last Bauma Trade Fair in 2019, so who knows what the future may hold.

But for now, what does this dissolution mean for Deere and Hitachi customers in the US and how will the markets be impacted, well according to the Editor-in-Chief of American publication ForConstructionPros, Wayne Grayson, not much will change anytime soon, hear what he has to say in the video below.