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."
