“The use of hybrid electrification, especially in the beginning, will have a cost premium,” says Mastanduno. “But how do you get the payback? It's all about the fuel consumption.” Deere thinks the sweet spot for most equipment buyers is a two- or three-year payback on the initial cost of going hybrid.

The company plans to source the electric parts, mainly the generators and motors, from outside suppliers. At CONEXPO, the loaders were fitted with components from ">Nidec Motor Corp., which also supplies electric-drive technology to LeTourneau.

However, Deere says it does not wish to be married to any one supplier.

“It is quite possible on the different John Deere machines that you could see different vendors of motors and generators,” Mastanduno says.