John Deere Announces New Global Operating Model for Sustainable Growth

Equipment and consumer divisions are being combined.

To achieve the alignment and efficiency necessary to develop a more complete portfolio to meet worldwide customer needs, while reducing overall costs, on Tuesday, Deere & Company announced a new global operating model that will combine the technology, expertise, experience, channels and investments of the Worldwide Agricultural Equipment Division and the Worldwide Commercial & Consumer Equipment Division into a single unit called the Worldwide Agriculture and Turf Division, effective May 1, 2009.

"The new operating approach has been in development since early 2008 – and is an extension of many of the successful efforts resulting from the implementation of the SVA model, in place since 2001," said Robert W. Lane, chairman and chief executive officer. "Products and functions will be formally realigned to make us more responsive to customer needs and market conditions, and allow us to work smarter, more effectively, in all that we do. Customers, suppliers and dealers will find it easier to work with John Deere because of reduced organizational complexity."

David C. Everitt and Makwart von Pentz will be presidents of the new division. Everitt will be responsible for the tractor product and the turf and utility product platforms while von Pentz has the responsiblity for crop harvesting, hay and forage, and crop care product platforms.

In addition, Everitt will have responsibility for sales and marketing in the regions that include U.S., Canada, Australia, New Zealand, China, Asia, India, and a portion of Africa. Von Pentz will have responsibility for sales and marketing for the rest of the globe including Europe, CIS, the Near and Middle East and Northern Africa, South America, Central America, and Mexico.

Deere said it expects this combination of business units to extend significantly the reach of turf management equipment, utility vehicles, lower horsepower and lower-spec equipment through improved access to established global networks. A regional approach also will enable the company to more closely target specific customer segments effectively and share best practices. In a related move, the company further announced it will be transitioning its six U.S. sales branch offices to two centers of excellence based in Lenexa, KS and Cary, NC.

"The new Agriculture and Turf Division and its global operating model will allow us to work in new ways, making better and faster decisions, closer to the customer," Lane said. "Bold steps like this allow us to improve our competitive position worldwide even during the current economic disruption."

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