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Lift trucks: "Hey, you got electric in my IC!"

August 13, 2009

Any of you old enough to remember that great TV commercial illustrating the happy (allegedly accidental) merger of chocolate and peanut butter might appreciate my comparing it to the more purposeful pairing of two great lift truck lines. Jungheinrich AG’s electric rider, narrow-aisle and pallet trucks (Class 1, 2 and 3) are now being offered in the U.S. alongside Mitsubishi Caterpillar Forklift America’s (MCFA) IC (Class 4) models. This is part of a manufacturing and distribution agreement that takes effect at the beginning of 2010. 

The fact that Jungheinrich’s products will be manufactured in Houston for the U.S. market is a breakthrough for this German company and for U.S. lift truck fleet managers previously unfamiliar with the line, says Jeff Rufener, VP of marketing for MCFA.

“That’s important because the difference in the ways the customers use and apply the product here in the States has precluded any of the European manufacturers from being a significant force in this market,” Rufener told me. Could that German design influence eventually become a staple here? Could we eventually see rotating-cab lift trucks in U.S. facilities?

“We have to explore the opportunity for the use of those concepts in North America, and that would all be available to us,” he continued.

But what’s more important for the U.S. market in Rufener’s view is the availability of a one-stop shop for all lift truck classes.

“The industry continues to consolidate and our customers want to do business with fewer and fewer suppliers,” he concluded.

Plus, bringing production of Jungheinrich products to North America will allow that OEM to better address the cost challenges the currency exchange rate posed to European brands wishing to compete in North America. Rufener describes this arrangement as “a game changer.”

Even the competition agrees with that.

“Jungheinrich was at a significant price disadvantage in this market place because they shipped in all of their product from Europe,” says Stu Jacover, president of R&J Midwest Equipment, Inc., a Chicagoland Hyundai dealer. Jacover told me this product line merger eliminates all of Jungheinrich’s roadblocks to the U.S. market, including brand unawareness and a weak dealer network.
 

He concluded: “I imagine the only people not pleased with this deal are MCFA’s and Jungheinrich’s competitors.”

 

Are you pleased? If so, tell me why. 

Tom Andel

Tandel4315@aol.com

Posted by Tom Andel on August 13, 2009 | Comments (7)

August 15, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
Johnny Valencerina (Philippines) commented:

The merger is worth watching for ; it's an American, Japanese and German technology rolled into one. Anyway, as the saying goes, "two heads are better than one", likewise, three or more heads are better than two either.


August 14, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
Todd D.Myers commented:

I think in a nutshell that we all should feel pretty lucky to have the opportunity to represent a quality product that can make a significant difference in so many ways. I can also say this..."I would not want to compete against Linde".


August 14, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
Thomas Andel commented:

I appreciate those frank comments, however it would be wise to reserve final judgment until this agreement has a chance to prove its wisdom. Who knows, those very factors you mention might have played some part in the decision to do this deal and start manufacturing Jungheinrich products in Houston. That will help them meet the specific needs of the American market. These are smart business people. I'm sure they'll take market input like yours to heart. By the way, thanks for using this blog to voice your opinions. I also suggest you make your voices heard at MCFA and Jungheinrich headquarters. OEMs value customer input, both positive and negative.


August 14, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
MTD commented:

we purchased Jungheinrich and consider it a major mistake. Quality is much lower than promised. Warranty term is less than cheaper alternatives. Replacement parts are outrageously high. We consider the purchase it a major mistake.


August 14, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
Charles L Girdner commented:

I agree with MD On the Jung pallet jacks. I have a customer who has eight Raymond built Cat pallet jacks.Because he was satisfied with Cat,he bought two Jung built jacks.He says that he will not be buying any more of these jacks and is switching to Toyota. The Toyota jacks are just like the old Cats.


August 14, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
MD commented:

I have not been ompressed by Jungheinrich Pallet Jacks, Poor quality, cheap materials, frames are extremely light. I have 2 units and am just not impressed with their stamina. Just my personal opinion. Have a good day.


August 13, 2009
In response to: Lift trucks: "Hey, you got electric in my IC!"
MG commented:

I'm neither pleased nor disappointed, as the local Mitsi/Cat dealer also has the Jungheinrich line, so customers already have the same products represented in the local market. Nevertheless, this points to the growing consolidation trend in the Material Handling industry . Along with the Crown IC program and the NACCO dealer cross-representation plan, it is further evidence that there are too many brands and too many dealers chasing too little business. The MCFA/Jungheinrich pairing will be a stronger threat to the already integrated manufacturers such as NACCO and Toyota, but it may also raise the "barriers of entry" for the bottom feeder lines from the Far East. Customers will probably be choosing from fewer, but stronger, competitors and they will ultimately decide the "winners" and "losers".

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