Issue link: http://read.dmtmag.com/i/114548
Manufacturing USA. "We tried blue and green when Kobelco first came to North America and it was not well received by the contractors," he said. "Most of them want yellow. Rather than fight that curve we made it that way. Most of the North American dealers also prefer it." Dealers who represented Kobelco in the past are confident the management change will be a positive for their operations. Among eight Case, Kobelco and New Holland dealers who responded to a CED questionnaire, most felt the brand would be successful under the new regime. "There's an undertow of excitement and enthusiasm that has been missing the last few years," said Scott Collins, vice president of sales for Tracey Road Equipment, a Kobelco dealer since 1982. "Most of our customers are repeat buyers and they are very excited. I have had numerous customers e-mail me and call me, excited that Kobelco will be responsible for their own brand," he added. Both Kobelco and its dealers acknowledge the brand had lost market share during the 10-year alliance with CNH. Tom Reynolds, president of Highway Equipment, who has represented the brand since 1986, recalled times when his dealership had 20 percent market share in his territory with Kobelco excavators. "That was phenomenal back then. That is not where we are today." Collins believes short-line brands such as Kobelco do better when they are represented by individuals with a sole focus. "I think a lot of other short-line manufacturers seem to do well when they can focus on the strength of the brand," said Collins. "You start adding products to a district manager and he is no longer a specialist, and we need a specialist. Having a Kobelco-only district manager will assist us in growing market share." Strengths of the Brand According to dealers, technology is one of Kobelco's strength. Focused Current dealers say that Kobelco technology has always been a major advantage in the market, and the company says it intends to maintain that reputation. Photo courtesy of Kobelco management. Kobelco's North American Management Team President and CEO Morita (Pete) Katsuhiko Vice President, Sales & Marketing Ron Hargrave Product Development George Lumpkins Parts Eric Hoffman Technical Publications/IT Jordan Lumpkins solely on excavators, the product line consists of eight models ranging in size from 12,000 to 180,000 pounds, plus mini excavators. Product development teams comprised of individuals in engineering, sales and service gather information then use sophisticated simulation technology to develop a prototype that undergoes exhaustive testing. To ensure that will continue, Kobelco has brought back product developer George Lumpkins, who, prior to his recent five years with Liugong in the Houston area, also formerly worked for Kobelco for more than 20 years. Kobelco has assured North American dealers that the excavator line manufactured in Japan will meet the needs of the North American market. New machines coming from Japan will be equipped with popular American market features such as onboard GPS, and will offer lower fuel consumption and lower noise. Machines built in Japan will be built to the same exacting standards as those built in Calhoun, Ga., under CNH. The only difference is the engine – now a Tier-4 Hino engine. Kobelco has made a significant commitment to the North American market. The company has signed a two-year lease on new headquarters offices in Houston, and, says their management, is also embarking on the design and construction of (continued on next page) March 2013 | Construction Equipment Distribution | www.cedmag.com | 41 40_Kobelco_Feature_KP.indd 41 2/27/13 3:34 PM