The OEM supply agreement covers mini and compact excavators weighing less than five tonnes, including battery electric excavators. Wacker Neuson will design and manufacture machines for John Deere at its facilities in Menomonee Falls, Wisconsin, USA.
The excavators will be distributed under the John Deere brand its dealer network, mostly in North America. The Wacker Neuson models will continue to be distributed under the Wacker Neuson brand through Wacker Neuson’s own distribution network.
Wacker Neuson said that it did not expect the deal to yield significant contributions to sales and earnings in the next three or four years. It said that it plans to invest “low double-digit million euros” to expand production capacity accordingly.
The agreement also involves a technical collaboration between John Deere and Wacker Neuson in the development of excavators of between five and nine tonnes. John Deere will purchase and incorporate design and technical intellectual property provided by Wacker Neuson, adapting and evolving it to meet its own manufacturing and technology 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.
Karl Tragl, chairman and chief executive of the Wacker Neuson Group, said: “Our relationship with John Deere has been a successful collaboration that spans many years in both the agricultural and construction sectors. Our product and manufacturing excellence complements John Deere’s established market reach in North America to open up outstanding business opportunities in the attractive mini and compact excavator market segment.”