CNH Announces Changes In Kobelco Alliance

Posted on January 3, 2013

CNH Global N.V. said that as a result of an ongoing strategic review of its construction equipment business, it has begun moving into the next phase of agreements with Kobelco Construction Machinery Co., Ltd. Under new, non-exclusive licensing and supply agreements that took effect Jan. 1, CNH and Kobelco are unwinding 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 said it will continue to manufacture hydraulic excavators incorporating current Kobelco technology at its Calhoun, Ga., San Mauro, Italy and Belo Horizonte, Brazil, manufacturing facilities and will continue to source select models, including short-radius excavators, from Kobelco in Japan for no less than five years and component parts no less than10 years.

Moving forward, 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.

"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."