Wacker Neuson will begin producing mini and compact excavators under 5 metric tons for Deere & Co., including battery-powered, electric models. The excavators will then be distributed under Deere's brand through its global dealer network.
Wacker Neuson will design and manufacture the machines at its facilities in Menomonee Falls, Wis., as well as Linz, Austria, for the requirements of John Deere mainly for North America.
John Deere will purchase and incorporate design and technical IP provided by Wacker Neuson, adapting and evolving to meet its own manufacturing and innovation requirements. These models will be produced and launched on the market exclusively by John Deere, while Wacker Neuson will independently continue to develop, produce and distribute its own 5-9 metric ton excavators under its own brand.
The companies plan a phased introduction of models. All Wacker Neuson models in the same product range will continue to be distributed under the Wacker Neuson brand through Wacker Neuson’s own distribution network.
Wacker Neuson management said the partnership will boost profits in the medium term. It does not, however, expect significant contributions to sales and earnings within the next three to four years. The Wacker Neuson Group plans to invest an amount in the low double-digit million Euro range to expand production capacity accordingly.
