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John Deere and Wacker Neuson agreement

Wacker Neuson will produce excavators under the John Deere brand

Posted on June 15, 2022August 18, 2022 by John Deere News

Deere Company and Wacker Neuson have reached an agreement to manufacture and supply John Deere mini-excavators and compact excavators as part of a sales contract in North America

John Deere Company has announced an expanded partnership with Wacker Neuson for 0- to 9-ton excavators in North America.

John Deere and Wacker Neuson will collaborate on the development of excavators under 5 metric tons, including battery-powered electric excavators to be manufactured by Wacker Neuson.

“Excavators are an integral part of our customers’ jobsites, and we expect growing demand to continue,” said Domenic Ruckolo, senior vice president, sales, marketing and product support, global construction equipment, John Deere.

“As we look to the future of our excavator lineup, this agreement will provide us with more flexibility as we continue to deliver a robust product portfolio that prioritizes operator convenience.”

Distribution, parts, service and support will continue through the Deere dealer network that customers have come to rely on.

“We are excited about the expanded agreement because it supports our goal of providing customers with performance-oriented features and industry-leading technology with greater flexibility,” said Jerred Powels, vice president of excavators, strategy and business development for John Deere. “Through this relationship, we will innovate faster and offer additional features and performance differentiation to our customers.”

The OEM supply agreement covers mini and compact excavators weighing less than five tons, including cordless electric excavators. Wacker Neuson will design and manufacture the machines for John Deere at its facility in Menomonee Falls, Wisconsin, USA.

The excavators will be sold under the John Deere brand name through a dealer network, primarily in North America. Wacker Neuson models will continue to be distributed under the Wacker Neuson brand through Wacker Neuson’s own distribution network.

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Wacker Neuson said it does not expect the deal to make a significant contribution to sales and profits over the next three to four years. The company said it plans to invest “a couple of million dollars” to expand production capacity accordingly.

The agreement also calls for technical cooperation between John Deere and Wacker Neuson in the development of excavators with capacities ranging from five to nine tons. John Deere will acquire and incorporate the intellectual property in design and technology provided by Wacker Neuson, adapting and developing it to meet its own manufacturing and technological requirements. These models will be produced and marketed exclusively by John Deere, while Wacker Neuson will independently continue to develop, produce and distribute its own excavators of this size under its own brand name.
Simply put, John Deere will oversee the design, production and technological innovation for the 5 to 9-ton excavator models, using Wacker Neuson’s solid foundation.

“Our relationship with John Deere is a long-standing, successful partnership in both the agricultural and construction sectors. Our products and manufacturing excellence complement the well-established John Deere market in North America and provide outstanding business opportunities in the attractive mini and compact excavator market segment.”

Carl Tragl, chairman and CEO of the Wacker Neuson Group, said

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