CNH which is forming the worldrsquos largest capitalequipment manufacturing group by merging its assets with Fiat SpA is redefining its design and supply agreements with Kobelco Construction Machinery

CNH Redefining Kobelco Alliance

Dec. 26, 2012
Will continue producing Kobelco excavators at plants in U.S., Italy, Brazil “…opportunity to build a stronger future …”

CNH Global N.V., the construction and agricultural equipment builder that is combining its assets with Fiat Industrial S.p.A., is proceeding with a series of agreements with Kobelco Construction Machinery Co. Ltd. The agreements, announced prior to the Fiat takeover proposal, will undo their joint ownership and equity stakes in various ventures they have formed, and eliminate any geographical exclusivity rights associated with their agreements.

The new agreements take effect on January 1, 2013.

CNH will continue to manufacture hydraulic excavators that incorporate current Kobelco technology at its plants in Calhoun, Ga., San Mauro, Italy, and Belo Horizonte, Brazil.  Also, it will continue to source short-radius excavators and some other equipment from Kobelco in Japan for at least five years five years, and component parts at least 10 years

From now on, CNH will market full-sized excavators that include 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," stated Mario Gasparri, who heads 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."

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)