CNH Industrial says it has completed its investment strategy to expand its excavator product portfolio with the signing of an exclusive agreement with Hyundai Heavy Industries (HHI) to produce and develop mini excavators.
CNH currently markets three excavator models -- at about 7,500 lb., 8,500 lb. and 11,300 lb. -- under both Case and New Holland colors. Hyundai currently markets in the U.S. six excavators with operating weights less than 18,200 lbs. After the Hyundai agreement is fully realized (it has a ten-year term, with a three-year renewal option), the CNH mini-excavator product offerings will include 14 models ranging from one ton to six tons.
CNH Industrial will have the opportunity to produce mini-excavator models of up to five tons at its plants and source OEM models above five tons. Hyundai says, "CNH Industrial will market four mini excavator models that will be supplied as complete products by HHI through OEM production, and ten other mini excavator models in the form of complete knock down kits through license production. Thanks to the agreement, HHI expects doubled increase in sales of compact excavators, over the next 10 years."
The partnership will begin with CNH doing final assembly of Hyundai kits, but transition through 2017 to move a more significant piece of the manufacturing process to CNH Industrial. It opens the door to possibly manufacturing at additional CNH sites around the globe, as well as the integration of FPT engines.
"This agreement helps leverage the manufacturing, intellectual property and field resources of two of the world's leading equipment manufacturers to quickly and efficiently bring a new product line to market," said Scott Harris, vice president of the North American region for Case. "CNH has worked directly with HHI to provide our field knowledge and application expertise to the first generation of machines. As the partnership advances, it will lead to technological and practical design enhancements that the brands will develop into future generations of machines based on their respective markets."
