Aug. 26 2021 07:06 AM

It plans to expand its scope of products and services in the Americas.

Tokyo-based Hitachi Construction Machinery and John Deere, Moline, Illinois, have announced plans to dissolve their joint venture in the Americas. The dissolution will be completed February 28, 2022.

At the same time, HCM is announcing that Hitachi Construction Machinery America Inc. will assume all product and service operations for the Americas in spring 2022. HCMA will continue to be a wholly owned subsidiary of the Hitachi Construction Machinery Group.

HCMA is planning to add more than 60 new local positions to strengthen its North American headquarters in Newnan, Georgia. Masaaki Hirose, Chairman and HCM executive officer, will continue to be responsible for HCMA. Alan Quinn, who currently serves as CEO, will continue in the same role.

“HCM, through HCMA, will be able to better determine its own destiny in the Americas with its own business strategies, improved products and services and updated technologies, all provided through a revamped and strengthened distribution network,” Quinn says.

Beginning spring of 2022, HCMA will introduce new equipment to the Americas with new technologies that increase efficiency and safety while lowering total cost of ownership. The company plans to differentiate itself through the product capabilities of these new machines. It will also assess the potential for completely new products that meet the needs of the Americas markets.

“HCM has been improving and investing in business strategies since 2017 to prepare for the creation of HCMA,” Quinn says. “This includes many ‘value chain’ initiatives to bolster parts and service, rental, used equipment, remanufactured parts and financing. It has also been improving technologies in analytics, IoT, telematics, fleet management and uptime services. In the future, HCMA will be able to better utilize these advances to capture more market share.” In the short term, all wheel loaders, excavators and mining equipment will be manufactured in Japan. HCM and HCMA will continue to evaluate this supply structure for the future to evaluate the possibilities for production in the Americas. One of HCMA’s main strategies will be to increase the usage of ConSite globally. The company will extend the service to new Hitachi brand excavators and continue to expand its use in mining. The goal is to increase the use of telematics and predictive analytics to increase uptime on the jobsite. “We are very excited to begin this new chapter as HCMA,” Quinn says. “We have an ambitious plan for the future and we are focused on dynamically responding to the needs of our customers and the quickly changing nature of the equipment market.”