CNH announce changes in alliance with Kobelco

New agreements in place to unwind joint ownership in businesses and eliminate any geographic exclusivity rights

AS a result of an ongoing strategic review of their construction equipment business, CNH Global have announced that they are moving into the next phase of agreements with Kobelco Construction Machinery Co. Ltd.

Under the new, non-exclusive licensing and supply agreements, which came into effect on 1 January 2013, CNH and Kobelco are unwinding their joint ownership and equity participations in all the companies formed in connection with the previous alliance and eliminating any geographical exclusivity rights associated with their agreements.

CNH will continue to manufacture hydraulic excavators incorporating Kobelco technology at their facilities in San Mauro, Italy; Belo Horizonte, Brazil; and Calhous, GA, in the US. The company will also source selected models, including short-radius excavators, from Kobelco for no less than five years and component parts for no less than 10 years.

Moving forward, CNH will market full-size excavators featuring Kobelco technology under their New Holland Construction brand, and compact excavators under their Case Construction and New Holland Construction brands.

‘This change in our relationship gives us the opportunity to build a stronger future for our customers, dealers and overall business,’ said Mario Gasparri, head of CNH’s construction equipment brands. ‘It 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.

‘Furthermore, 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.’