Deal will see Kobelco excavators enter the Middle East
Case and New Holland badge holder, CNH, has announced that its decade-long exclusivity alliance with Japan’s Kobelco is to end. The two companies first entered into a global alliance in 2002, sharing manufacturing facilities and technological knowhow. Under the terms of the partnership Kobelco was unable to market its products in several territories outside the Asia Pacific region, […]
Kobelco excavators will be marketed in the region for the first time since 2002
Case and New Holland badge holder, CNH, has announced that its decade-long exclusivity alliance with Japan’s Kobelco is to end.
The two companies first entered into a global alliance in 2002, sharing manufacturing facilities and technological knowhow. Under the terms of the partnership Kobelco was unable to market its products in several territories outside the Asia Pacific region, including the Middle East from 1 January 2013.
The new agreement, where both parties will unwind their shared ownership of several manufacturing facilites, CNH will continue to be entitled to “manufacture and sell hydraulic excavators currently licensed from Kobelco Construction Machinery”. Up and until the end of December 2017, CNH will also have the right to procure hydraulic excavators from Kobelco Construction Machinery on an OEM basis.
CNH said it 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. Although the end to geographical exclusivity rights means that Kobelco is free to build up its sales and service network in the region.
“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.”
