CNH Global and Kobelco Construction Machinery are dissolving their joint ownership and equity participations in all the companies formed in connection with their previous alliance and eliminating any geographical exclusivity rights associated with their agreements, CNH announced this week. The re-structuring of the relationship will allow CNH to have direct access to the burgeoning Asia construction market.
However, CNH will continue to manufacture hydraulic excavators incorporating current Kobelco technology at its manufacturing facilities in Calhoun, Ga.; San Mauro, Italy; and Belo Horizonte, Brazil. CNH will continue to source select models, including short-radius excavators, from Kobelco in Japan. CNH’s sourcing from Kobelco in Japan will continue for at least five years as well as component parts for at least 10 years. Also, CNH will market full-sized excavators featuring Kobelco technology under its New Holland Construction brand and compact excavators under its New Holland Construction and Case Construction Equipment brands.
“This change in our relationship gives CNH Construction Equipment the opportunity to build a stronger future for our customers, dealers and overall business,” said Mario Gasparri, head of CNH’s construction equipment brands. “This change is vital because it lets us directly manage our business in all regions around the globe, including the Asia-Pacific region, which is home to the world’s fastest-growing construction equipment markets. More than that, it allows us to leverage the industry-leading technologies and resources available to us as part of CNH Global and Fiat Industrial to better address customer needs.”
