07.07.2017

John Deere and Wacker Neuson form strategic alliance

John Deere and the Kramer division of Wacker Neuson, have formed a strategic alliance on the distribution of Wacker Neuson/Kramer telehandlers to the agricultural market.

The deal also includes Kramer telescopic and all wheel steer wheel loaders. The companies say that the aim of the agreement is to build a long-term collaboration between them. The alliance is subject to approval from the relevant anti-trust authorities.

John Deere does not produce telehandlers or specialist wheel loaders and will therefore recommend Kramer as the preferred supplier of this equipment to its dealer network. The collaboration will initially focus on Europe, expanding later to the CIS countries, North Africa and the Middle East. John Deere will also purchase a number of shares in the Kamer-Werke division – the size of this stake has not been disclosed.

Wacker Neuson’s current agreement to supply Claas branded telehandlers for the agricultural market comes to an end next year as Claas moves to Liebherr, which is why the company is looking for alternative channels to this market. See Kramer and Class to end telehandler deal
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A Kramer KT276 telehandler

Wacker Neuson chief executive Cem Peksaglam said: “With John Deere, we have secured the global leader in the agricultural sector as a strategic alliance partner. This win-win collaboration will support our expansion plans, helping Kramer to expand its position in the agricultural sector even more rapidly. Thanks to the additional business we will grow faster with Kramer, especially in markets where John Deere holds strong market positions.”

John Deere president - Agriculture & Turf Division – Europe, CIS, Asia, Africa Markwart von Pentz added: “Kramer is one of the leading manufacturers of compact wheel loaders and telescopic handlers in Europe. This exclusive partnership is an extremely important strategic move for us. We are confident it will enable us to offer our sales partners in the agricultural sector access to compelling products that perfectly complement our own portfolio. Kramer’s loaders are a perfect match, reflecting our commitment to cutting-edge technology and outstanding quality.”

Vertikal Comment

This is an interesting move for both parties, and looks as though it might have serious longer term potential than a simple supplier recommendation to dealers. If it works it could of course lead to something a good deal more significant. For the moment however it looks like a good move to replace the sales to the ag market through Claas which is moving to Liebherr for its telehandlers,

Wacker Neuson is clearly keen this time round to have one of its own brands on the product. Doing it this way also makes it a much easier deal for John Deere to get done, and makes good sense. Whether any John Deere dealers will be tempted to switch from their current telehandler suppliers remains to be seen.