John Deere Construction has announced the end of their distribution agreement with Hitachi Construction Machinery Co., Ltd. The agreement included the distribution of Deere branded and manufactured construction, forestry and compact machinery in Australia. They first formed the agreement in 1988.
“The alliance between the two companies has seen John Deere grow to be one of the world’s leading manufacturers of construction and forestry equipment.”
—Hitachi
The end of the agreement comes as both brands focus on new, different priorities and markets all over the world.
Dan Fitzpatrick, Global Director of Construction & Forestry Sales, says the agreement has been a hugely positive move for both companies, but the time has come to move on. “John Deere Construction & Forestry Company (Deere) and Hitachi Construction Machinery Co., Ltd. (Hitachi) have a long and successful global partnership spanning multiple continents and product lines,” he said.
“This partnership served both companies well and supported each company’s global growth over the multi-decade relationship. Over the course of the next five months, Deere and HCA will work together to execute a seamless transition of business to John Deere Limited’s newly appointed construction and forestry dealers in Australia.”
What Happens Next?
From May 1, 2019, there will be new authorised John Deere Construction & Forestry Dealers:
- RDO Equipment Pty Ltd – NSW, VIC, Qld, SA, TAS
- AFGRI Equipment Pty Ltd- WA
“John Deere Limited, HCA, RDO Equipment and AFGRI are committed to smoothly transitioning customers who have existing agreements and service contracts with HCA.” says Fitzpatrick.
“We believe this change in distribution will allow both companies to increase focus on their respective brands and provide a world class experience to customers across Australia.”
These changes will not impact Deere and Hitachi partnerships or distribution arrangements outside of Australia.
For further information, find the original press release here.