July 28, 2008
TO: All John Deere Ag Combination & C&CE Independent Dealers (U.S. & Canada)
FROM: Bob Barbour, Group Director, Marketing Operations & Customer Support
R/E: Marketing Agreement with STIHL Inc. & STIHL Ltd.
Today, John Deere will announce STIHL Inc. and STIHL Ltd. as the preferred supplier to
John Deere dealers gas powered and corded handheld power equipment in the United
States and Canada. This announcement unites two premium brands within the outdoor
power equipment industry and enables qualifying dealers the opportunity to provide
customers the leading handheld power equipment brand.
What prompted this decision? The decision to partner with STIHL resulted from our need to
increase our focus in other strategic growth areas as well as ensuring dealers the opportunity
to partner with a leading supplier of residential- and commercial-grade portable power
products.
Will John Deere-branded handheld power equipment continue to be manufactured?
The existing John Deere-branded handheld power equipment will soon be substituted with
the STIHL portfolio at qualifying dealers across the United States and Canada.
What will happen to the existing John Deere-branded inventory? A special order program
featuring substantial order discounts on remaining factory inventory of John Deere-branded
handheld power equipment begins on 01 August 2008. For existing dealer inventory, part
numbers will remain current until 01 November 2008. Online customer coupon offers will
assist you in retailing current inventory.
What do I need to do as a dealer? If you currently carry STIHL, you do not need to do
anything extra as a result of this announcement. It is not mandatory that you pick up the
brand. If, however, you would like to add STIHL handheld power equipment to your product
offering, please contact your local STIHL distributor [see attached map]. All John Deere Ag
and CCE dealers, regardless of location, may apply. To carry the line, dealers must meet all
normal STIHL requirements and abide by the brand’s policies and procedures.
NOTE: All ordering and warranty processes will be from STIHL. Dealers will not access any
John Deere systems to carry STIHL products.
What about parts and service support for John Deere handheld power equipment?
Service parts will be kept per normal obsolescence policies. DTAC will continue to provide
service support, and normal warranty will apply.
Will there be any joint marketing programs? John Deere and STIHL are currently
developing joint marketing, advertising, and dealer training programs which will be
communicated at BTL and Parts Expo.
In closing, we are confident that this partnership will further your ability to provide your
customers comprehensive solutions and enhance your profitability opportunities. Additional
information will be conveyed over the coming months. In the meantime, please contact your
John Deere territory manager with any questions.