The move follows an agreement between both parties to end the Deere-Hitachi joint venture manufacturing and marketing agreements.
From 28 February 2022, John Deere is to acquire the Deere-Hitachi joint-venture factories in Kernersville (North Carolina), Indaiatuba (Brazil) and Langley (British Columbia).
At these factories, John Deere will continue to manufacture Deere-branded construction excavators while production of the Hitachi-branded versions will be discontinued. The company will offer a full portfolio of excavators through a supply agreement with Hitachi.
John Stone, president, John Deere construction & forestry division and power systems, says: "For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas. As we turn the page to a new chapter of Deere-designed excavators, we remain committed to supporting our customers of today and tomorrow."
"Looking to the future, John Deere will build on our legacy of quality and productivity and accelerate development of industry-leading technology and machinery that answers the fundamental need for smarter, safer, and more sustainable construction so our customers can shape tomorrow's world," Stone adds.
The new agreement is subject to the receipt of certain required regulatory approvals as well as other customary closing conditions.