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Just spotted this item.Looks like Fendt also having a dabble...https://www.agriland.ie/farming-new...o_read_section&utm_campaign=also_read_section
This is where the “rub” is in the trade. Long line means short line, if you follow me!I did hear in the grape vine a certain dealership may have to drop mc,hale, to make way for the lely stuff. That to me would be like loosing a 50 pound note and finding a 20.
Our local Fendt dealer has done that.I did hear in the grape vine a certain dealership may have to drop mc,hale, to make way for the lely stuff. That to me would be like loosing a 50 pound note and finding a 20.
Quite right. Bill and Martin didn’t take the decision ultimately but I guess it was inevitable. For sure many Agco dealers now have some interesting conflicts of interest for sure.Our local Fendt dealer has done that.
Think it was mchales choice the way the letter read. They are also krone dealers so would be getting a bit crowded.
I think things are different this time though. Globally the customer make up has changed (less!) and Tractors alone won’t bring enough revenue in due to lower volumes. That said, it will be interesting to see how they develop machinery lines as unlike the specialists they have many areas to choose where development funds are placed. The dealer trade is very much in a state of flux due to what you have eluded to in your post. It’s going to be an interesting landscape for a while.There is massive rationalisation of dealers yet to come, mainly due to tractor brands getting back to marketing their own near full line of implements.
Kubota with Kverneland/Vicon.
MF and Fendt with Fella and Lely
CNH with Kongskilde/JF/Overum
All those dealers will eventually be under pressure to end their existing implement franchises which clash with the big full-line brand. So the specialist implement manufacturers, even massive giants like Kuhn and Krone will tend to be squeezed out from many dealers and have to find new specialist implement dealers perhaps. Its inevitable that their sales will suffer in the medium term.
There will be great pressure on certain dealers. My local NH dealer is also a well established Krone dealer and also a Welger dealer. So they will have some head scratching to do.
Local MF dealer used to be a Fella and McHale dealer until Kuhn was taken on. Kuhn took priority there, until MF put a spanner in the works and started pushing Fella in MF colours a few years ago. Now MF have Lely and the Lely/Welger balers as well, which clashes badly with Kuhn grassland equipment but MF do not have any worthwhile tillage equipment. So if MF/AGCO really want to be full-line, they need to purchase yet another company that specialises in ploughs and drills and harrows.
Claas is an implement dealer that saw this coming and became proactive by actually buying a tractor company, from under the nose of a sleeping AGCO. The result locally was that eventually the Claas/CASE-IH and later McCormick dealer was forced to dump the rival tractors. Not the dealer's choice I'm pretty sure.
Luckily for the specialist implement companies, the big tractor brands have a very poor history of persevering with investment in implements. They tend to be 'here today-gone tomorrow'. I mean, New Holland and MF used to be massive in drills, spreaders, grassland equipment including mowers and they just dropped it all in the 1990's to concentrate on their core products. Now here we are coming to the 2020's and history is repeating itself in that tractor brands are getting back into implements. My bet is that they will all eventually decide once again to drop those lines and get back to their core product line within ten years, fifteen at the most. What goes around comes around.
It's a shame. They provided a good service. Haven't been told who new McHale dealer is yet.Quite right. Bill and Martin didn’t take the decision ultimately but I guess it was inevitable. For sure many Agco dealers now have some interesting conflicts of interest for sure.