AGCO going to North America?

I found this today.  Discontinue the orange, then move manufacturing from France back to North America?!  What's up with that??

 

Agco Corp. (AGCO) intends to build more of its farm tractors in the U.S. as part of its ongoing campaign to raise its profile and profit in North America.

North America accounts for 20% of Agco's total sales, but profits from the region have been miniscule, at best. Agco lost money in North America in three of the past six years. The Georgia-based company, whose brands include Massey Ferguson and Challenger, imports most of the high-horsepower tractors it sells in North America from France. Shipping costs and a stronger euro against the U.S. dollar add to the cost of Agco's tractors, forcing the company to trim its profit margin to remain competitive in the market.

Moreover, the company acknowledges that farmers' perception of Agco as a foreign brand also contributes to Agco being a distant third in the U.S. market behind Deere & Co. (DE) and CNH Global N.V., the maker of Case IH and New Holland farm equipment.

"We think it will help us to be closer to the market by having local production of high-horsepower tractors," Chief Financial Officer Andy Beck said in an interview with Dow Jones Newswires. "There'll be an ability to market tractors a little more aggressively and customers will like that they are made in the U.S. and in particular the Midwest."

Beginning later this year, Agco will transfer assembly of wheeled tractors to its plant in Jackson, Minn., from its Beauvais, France factory. Partially completed Massey Ferguson 8600 Series tractors and Challenger MT600C Series tractors will initially be shipped from France to Jackson for final assembly. Over time, more assembly work will be done at Jackson and the company will gradually replace European-made parts and component for the tractors with a U.S.-based supply chain, Beck said.