LiuGong launching into rental

LiuGong is responding to the growing demand for rental in China and Southeast Asia by launching a new Global Rental and Used Equipment Business, which will be headed by former Caterpillar rental manager Graziano Cassinelli.

Due to be implemented soon, the new offering will be available through LiuGong’s dealers and supported by a centralised fleet of equipment. The number of units has not been specified.

Cassinelli told IRN, “Our primary focus is to leverage and improve rental and used dealer capabilities.”

When asked what regions the new Global Rental and Used Equipment business will be operating in, Cassinelli said, “Our 2020 priority is China and Southeast Asia.”

Cassinelli has a 30 year career in industrial and construction equipment behind him, working with CNH Industrial and Caterpillar dealers CGT and Barloworld Equipment.

During his four-and-a-half years at Caterpillar, Cassinelli worked as a manager in used equipment and rental, most recently based in Singapore. Prior to that, he was Rental and Used Executive Director at industrial brand management company Barloworld Equipment Limited for more than seven years.

The company’s dealers will initially be focused on renting LiuGong’s wheeled loaders and excavators, but other products from the manufacturer will be introduced over time. No other complementary brands will be rented – at least to begin with; “Initially we will be focused on our core business machines,” said Cassinelli.

He spoke of changing customer needs in China, saying, “They are quickly moving from ownership to the rental business model to reduce their company risk.”

“LiuGong wants to be on top of the task of providing the right customer solutions anytime, anywhere.”

Kevin Thieneman, Vice President, LiuGong Machinery and Chairman, LiuGong North America and LiuGong Latin America, added to this, saying, “Rental is the largest segment for the construction equipment industry in Europe and North America, and is projected to become a leading segment in China.

“In addition, effective management of used equipment is an important element to ensuring end users enjoy lower total cost of ownership.”

“This new endeavor will champion LiuGong’s efforts to become a leader in rental and used equipment.”

Commenting on the wealth of knowledge Cassinelli will be bringing to the new role, Thieneman said, “Graziano has dedicated his career to rental and used. He has OEM experience at Caterpillar and CNH Industrial as well as dealer experience at CGT and Barloworld. LiuGong is fortunate to have a leader with such rich experience.”

Cassinelli said, “With its tough equipment, LiuGong offers the type of machines and equipment that the rental market needs and wants. And the opportunity to spearhead this effort with LiuGong is one that I am looking forward to.”

Liugong’s initiative reflects a growing focus on rental by some major OEMs. In the past 18 months, for example, Hitachi has launched a dealer rental programme in Europe, which it is also now expanding in China. Caterpillar’s dealers, meanwhile, have long been involved in rental.