Kobelco Expands North American Engine Supply Chain

The Japanese heavy equipment manufacturer has secured alternative engine suppliers for its North American excavators and cranes following Hino Motors' EPA certification delays, ensuring uninterrupted market supply while enhancing machine performance.

Supply Chain Resilience Tested

When Hino Motors encountered unexpected delays in obtaining 2021 EPA emissions certifications for engines powering select Kobelco excavators and cranes in North America, the construction equipment giant faced potential production disruptions. Rather than waiting for resolution, Kobelco America swiftly implemented contingency plans to maintain product availability.

Dual-Supplier Solution Implemented

The company has now formalized agreements with two established engine manufacturers—Yanmar and Isuzu—to power affected equipment models. This strategic move not only safeguards supply chain continuity but unexpectedly delivers performance upgrades for several machine categories.

"We're pleased to confirm the engine supply solution for Kobelco America's excavators and cranes is now finalized with executed agreements," stated Jack Fendrick, COO and Vice President of Kobelco America. "Our priority remains delivering certified products that maintain Kobelco's renowned quality and performance standards."

Performance Enhancements Emerge

The transition brings measurable benefits: most models switching to Yanmar or Isuzu powerplants will receive horsepower increases. The SK300-SK500 excavator range and CK800-CK2750 crawler cranes will utilize Isuzu engines, while Yanmar units will power the SK170-SK270SR series. Both manufacturers already supply engines for Kobelco's compact and mid-size excavators.

Market Impact and Compliance Assurance

Kobelco emphasizes that all equipment—both previously manufactured and 2021 production—remains fully EPA-compliant. The company maintains its parts and service commitments for existing Hino-powered machines in North America, with components remaining available through dealer networks.

Notably, the supply adjustment affects only specific larger models. Kobelco's full range of 1.7-16 ton compact excavators continues normal production and distribution, unaffected by the engine certification issue.

Global Partnership Continuity

The company clarified that its worldwide collaboration with Hino Motors remains intact outside North America, with both parties anticipating strengthened future cooperation in other markets.

Industry Implications

Kobelco's rapid response highlights growing emphasis on supply chain diversification within capital equipment sectors. The episode demonstrates how proactive supplier management can transform potential crises into opportunities for product improvement and customer reassurance.