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Next year's emissions standards represent opportunity for Deere

Wednesday, December 22, 2010

As new 2011 emissions standards come into law in the U.S. and Europe, John Deere anticipates engine-finessing business to be lucrative.
As new 2011 emissions standards come into law in the U.S. and Europe, John Deere anticipates engine-finessing business to be lucrative.

John Deere is preparing to maximize profits as stricter emissions standards become law in Europe and the U.S., according to the Financial Times.

Complex engines require finessing so they may coincide with new emission requirements and the globe's largest maker of tractors intends to capitalize on businesses that work on after-sales servicing. John Piasecki, marketing director at John Deere Power Systems, the engine division of the tractor manufacturer, said large diesel engines are more complex as these new requirements kick in.

"That has a tendency to bring customers back to the original manufacturer network," Piasecki said.

Requiring off-road diesel vehicles sold in 2011 to emit 90 percent less particulate matter is one required standard. Known in the U.S. as Tier 4 and in Europe as Stage IIIB, the standards will be in effect for the next five years.

"These new [technology standards] will make it more difficult for end-market users to sway away from the original equipment manufacturers," Adam Fleck, an analyst at Morningstar, told the Financial Times. "There is a big opportunity to capture a larger percentage of that aftermarket business."

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