A marketing deal which will see John Deere dealerships in the U.S. add Honda equipment to their product offerings, starting in 2012, may expand to Canada.
Deere and Co. on Tuesday said it will offer all its active U.S. dealerships a sign-up period, starting late this year, to enter agreements to sell the Honda Power Equipment line, including walk-behind lawnmowers, generators, tillers, water pumps and snow blowers.
The company said it “may also consider the agreement for Canadian dealers in the future.”
U.S. customers who want to buy a new Honda power product, or service an existing product, at a John Deere dealership will be able to do so at participating dealers after the dealer is added to the Honda sales network, Deere said.
Read Also
Deere forecasts weak annual profit on tariff hit
Deere & Co forecast an annual profit below estimates on Wednesday, pressured by tariff impacts and weaker margins from its large tractors, sending the farm-equipment maker’s shares down nearly five per cent.
The program could take through 2013 to be completely phased in, Deere added.
The terms of Deere’s new sales and marketing agreement with Honda also mean Deere dealers will no longer market John Deere-branded walk-behind mowers or walk-behind snow blowers “in any sales channel” in the U.S. after 2012.
“For homeowners, our premium John Deere lawn tractors will continue to lead the way at our dealerships but will be complemented with the strong line of Honda power equipment products,” David Everitt, president of Deere’s worldwide agricultural and turf division, said in a release.
