AGCO going to North America?
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Topic: AGCO going to North America?
Posted By: EPALLIS
Subject: AGCO going to North America?
Date Posted: 15 Feb 2011 at 9:25pm
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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. |
Replies:
Posted By: AC720
Date Posted: 15 Feb 2011 at 10:07pm
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From what I have heard, the major reason for moving the production of the 8600 series MF's as well as the wheel based Challenger models back to North America was because AGCO wants the dealers to get the tractors on the dealers lots quicker in North America instead of waiting for them to arrive in port from over seas and then trucked out to the dealers. I guess it was getting pretty expensive to ship the tractors over from Europe. It seems like they are going after the North American market with this move. Still I am disapointed in Agco dropping the Orange tractors! I wish they could have paid royalties to AC energy and put the "Allis -Chalmers" name back on the DT-B series when they were released but whats done is done. I hope they can hold on the Gleaner brand for a few more yrs but I got a bad feeling that Gleaner will be next.
Take Care Jason B ------------- "Allis -Chalmers- The Rising Power in Farming" "If you want it cleaner get a GLEANER" |
Posted By: redline
Date Posted: 15 Feb 2011 at 10:11pm
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Funny thing is, it won't make a bit of difference to me as long as they continue to be bullheaded about their brand choices. I have tried the Challenger route, and it just can't compare to dealing with my regular dealer. I refuse to go the Massey route due to perception of the brand. If I had wanted massey stuff, I would have searched it out. Trying to force the issue on me just makes me more determined to stand my ground. ------------- If it weren't for the last minute, I wouldn't get anything done! |
Posted By: ILGLEANER
Date Posted: 15 Feb 2011 at 10:21pm
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I couldnt care less where they move it to. I am not interested in a Massey or Challenger,if they were made in Willow Hill,ILL right beside my farm. They have nothing I am interested in,in the tractor line. Congrats to the Mn. people more jobs
IG ------------- Education doesn't make you smart, it makes you educated. |
Posted By: JohnCO
Date Posted: 15 Feb 2011 at 10:32pm
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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." Yeah, and maybe if they hadn't dropped their most popular line of tractors in NA. sales might be better. ------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: Byron WC in SW Wi
Date Posted: 16 Feb 2011 at 7:48am
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I don't buy the "lost money in the US" statement. Everyone knows how to manipulate their financial documents to show the money where they want it too. Wanna bet all those VP and CEO salaries were paid from the monies made in the US? How about R&D? Did the mighty European market pay for the bulk of that? Being a US based company that has to pay taxes here their over seas profits used to not be taxed, I believe. I think that will change. I'm a big made in USA guy so I applaud AGCO moving production back to the US. But their models are too big for me and I wouldn't buy a Challenger or MF anyway. I was a fool for believing that AGCO would make orange tractors as long as we bought them but I bought my made in France tractor because I thought they would. If I would've bought a tractor solely because it was made in US I would've bought a Deere. |
Posted By: TomYaz
Date Posted: 16 Feb 2011 at 8:38am
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"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. "
AGCO..so smart and so stupid at the same time....They now realize that "Made in USA" means something to the US farmer but painting and labeling it with a foreign name means nothing? ------------- If its not an All-Crop, it all crap! |
Posted By: Daehler
Date Posted: 16 Feb 2011 at 9:44am
| AGCO fooled all of us, farmers and collectors alike. They said the orange going to be around for awhile and then dropped it. Yes Made in the US is important to people now because we're are tired of no count foriegn crap, but i think that AGCO is going say "oh we know the orange tractor operartors are upset about discontinuing the orange but now the MFs are going to be made in the us, so that should patch everything up". AGCO should have been making tractors in the US at least 10 years ago. Dumb question now, where was the the AGCO ALLIS tractors made after AGCO bought out Duetz? |
Posted By: JohnCO
Date Posted: 16 Feb 2011 at 10:14am
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Weren't the bigger ones built in the US after the buyout? I know they bought midsize tractors from SAME and did they still have a working agreement with Fiat?
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: gleaner1
Date Posted: 16 Feb 2011 at 11:07am
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Production on the 9100 series 88-93 was in Coldwater (White), then Agco poured a few million into the old AC Independence (Gleaner) in 94 to update for tractor production on 9600 series, then in 98 or so production was moved to France. They have been doing strange things since day one. pour all that money in that plant for maybe 4 years of production.
------------- ALLIS CHALMERS "The color is orange" |
Posted By: Claus
Date Posted: 16 Feb 2011 at 11:32am
| Hey Daehler, Agco didn't fool me. Never did think they were anything. |
Posted By: JR Maley
Date Posted: 16 Feb 2011 at 1:33pm
| I only like tractors that are made in West Allis, WI., Moline Ill., or Horicon, WI (for Lawn/Garden Tractors) |
Posted By: Daehler
Date Posted: 16 Feb 2011 at 2:11pm
| I thought they made some out of the gleaner plant, now i got to buy one, lol. Made only a hour away driving a combine. I like all the models, (even the ones from france) just so its orange and has Allis or AGCO one the side, color and name is everything. AGCO is Allis to me. |
Posted By: Ted in NE-OH
Date Posted: 16 Feb 2011 at 4:46pm
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They probably got tax abaitment in Minn. ------------- CA, WD, C, 3 Bs, 2 Gs, WC, I-400, 914 |
Posted By: gleaner1
Date Posted: 16 Feb 2011 at 7:19pm
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Yes when you think about it, those 9600 series built in the mid nineties were as close to AC as it gets, they were built in a former AC plant, by mostly former AC people and painted AC colors, and to think some members say the last ALLIS tractor was built in 85. Yes i know there was a lot of White design in those, but there is nothing wrong with White, id still take that name over a Massey or Challenger.
------------- ALLIS CHALMERS "The color is orange" |
Posted By: Daehler
Date Posted: 16 Feb 2011 at 7:37pm
| Heres to the WHITE name instead! |
Posted By: Matt (NEIA)
Date Posted: 17 Feb 2011 at 5:14am
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Yep we farmed with WHITE's, dang good tractors ------------- 1955 WD-45 with factory PS |
Posted By: Bob-Maine
Date Posted: 17 Feb 2011 at 7:39am
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JR Maley. I also like the ones made in Gadsden, Alabama. Bob@allisdowneast ------------- I used to think I was indecisive, but now I'm not sure. |
Posted By: AC720
Date Posted: 17 Feb 2011 at 11:14am
True, the Agco 9600 series were as close to the former AC as possible and the Orange paint on the Agco 9600 series was very close to the AC colors. The Agco 9600's were a darker shade of orange when they left the plant. So in a way, the last true AC tractor was built in 85, even though the Agco 9600 series were a great tractor as well.
In all honesty, I think the color scheme of the Agco DT- B series was much closer to the orginal AC color then what the Agco 9600 series were. Just my my opnion though and not knocking the 9600 series. ------------- "Allis -Chalmers- The Rising Power in Farming" "If you want it cleaner get a GLEANER" |
gleaner1 wrote:Posted By: beeman
Date Posted: 18 Feb 2011 at 11:28pm
Same here! I'd love to see a new B plant open in "B"irmingham..LOL. ------------- 1949 B 3930 Ford- Have owned other Orange ,green,red,yellow,dark green tractors and equipment. |
Posted By: Freighttrain
Date Posted: 08 Jul 2011 at 5:42pm
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bringing this back up,one of the buildings and a lot of land is up for sale at the old Gadsden location.Too bad they could buy the land and build a new plant.Right on the highway,The new 759 extention would be 1/2 mile away if the politicians ever grow a set of bulldoze the Ghetto,Active railroad butts up to the property.Granted the land is a little skinny but how big of a plant would they actually need.The stretch must be 100-200 yards wide and almost 1/4 mile long but with 2 roads cut across it. |
Posted By: Larry B
Date Posted: 08 Jul 2011 at 6:31pm
| Take a look at the green ones and you will find a lot of parts from across the water, maybe only assembled in the US. |
Posted By: michaelwis
Date Posted: 08 Jul 2011 at 6:36pm
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I refuse to understand how come i can order a brand new car or truck , and tell em what color i want , but i cant do it with a tractor ... ? AGCO ALLIS .. Whats wrong with you ?..
AND you wonder why RED AND GREEN outsells ORANGE .. REALLY Piss,s me off ------------- WD WD45 DIESEL D 14 D-15 SERIES 2 190XT TERRA TIGER ac allcrop 60 GLEANER F 6060 7040.and attachments for all Proud to be an active farmer |
Posted By: Brian Jasper co. Ia
Date Posted: 08 Jul 2011 at 7:17pm
------------- "Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian." Henry Ford |
Posted By: TomYaz
Date Posted: 08 Jul 2011 at 7:31pm
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"Moreover, the company acknowledges that farmers' perception of Agco as a foreign brand.."
Lets see; trash the orange and go with European Massey....".Gee people now perceive as "foriegn" ".... YA THINK!!!???""
------------- If its not an All-Crop, it all crap! |
Posted By: MI8050
Date Posted: 09 Jul 2011 at 6:48am
| Heck JD planters have a bunch of cast parts that say Made in China right on them, that is a big turnoff. My new planter is coming from Hesston KS. |
Posted By: Dave Everett
Date Posted: 09 Jul 2011 at 8:18am
| About time someone stiffed the French.............after all they do SOOOOOOOo love and support the Brits and Americans !!!!!!! |
Posted By: mdtractormechanic
Date Posted: 09 Jul 2011 at 8:42am
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So they think that if they assemble the tractors here that makes them "American Made"? So they must think farmers are stupid. Besides, I'd probably be more willing to buy from China than a two faced "ally" like france! ------------- Joe's 1939 Model WC, 1940 Model RC, 1944 & 1950 Model C's, B-125 PU |
Posted By: TimNearFortWorth
Date Posted: 09 Jul 2011 at 10:10am
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Byron hit the nail on the head; Taxes.
Additionally, do not be fooled that ANY company cares about Made in America, other than using the phrase for marketing/publicity when it is useful to them.
I noted previously about the typhoon evac we did from a semi-sub drilling rig off of the Southern Philippines during the mid 90's. The clerk at the front desk of the hotel the oil co. booked us at came to work one day with a large "LEVIS" bag and I commented that she bought some good ol' USA denim jeans. This local gal advised that although the tag stated "Made in America", she had bought them at the factory store on her way to work, where all of her family members worked.
She also showed me that the pants were made without the button at the waist as LEVIS had those attached when they hit the US so they could still use the "Made in America" tag-line.
I still believe I will see a good portion of the overseas labor cycle back to our shores in my lifetime, due to simple economics.
After living in Asia for ten years, I noticed first-hand just how much of our labor had moved there, but more importantly, how doing so created a very fast standard of living increase in those countries. The more work the people could obtain from real manufacturing jobs, the more rights they insisted on; pay, benefits and everything we came to demand after we ourselves industrialized throughout the last century. Asians want every convenience we have in the west, perceived or otherwise and their income must increase to obtain same.
Some of these jobs are already coming home and if our government was smart enough, they would start the push towards putting our folks back to work with this intent.
As for the US paying the most of the NATO countries as we are perceived as the most wealthy, why not pay our dues in corn, wheat, soybeans, etc. vs. increasing our debt by giving money?
We can't keep everyone in the world happy, nor should we be expected to take care of everyone else in the world.
Take care of America first, then help others with anything we have left over . . . . .
Novel idea you say? Maybe, but I have also been a firm proponent for many years concerning ID verification and drug/alcohol testing of all recipiants of government checks.
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Posted By: ncrc5315
Date Posted: 09 Jul 2011 at 3:07pm
| I was pretty upset about the loss of the orange paint, and their excuses still don't make any sense, but underneath the paint it's still a Fendt, and that's what I like about the tractors. |
Posted By: Okiejohn
Date Posted: 09 Jul 2011 at 5:41pm
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Tim, I agree WHOLEHEARTEDLY with everything you just said, especially about taking care of our own first, and drug and alcohol testing everyone who gets government checks.
------------- Be sure you are right, then go ahead.--Davy Crockett |
Posted By: indiana2door
Date Posted: 09 Jul 2011 at 8:43pm
| You should have bought a planter made in Williamsburg, Iowa. Then you would have a real planter. |
Posted By: AC WD45
Date Posted: 09 Jul 2011 at 8:54pm
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You didn't hear? it's White by Massey Ferguson, Hesston by Massey Ferguson, even Gleaner BY MASSEY FERGUSON like THAT AINT A MAJOR SLAP TO THE FACE......Well Massey Ferguson can kiss my ass...............god that just lights a fuse.... ------------- German Shepherd dad 1957 Allis Chalmers WD45 #WD234847 1951 Allis Chalmers WD #WD88193 |
Posted By: Dave in il
Date Posted: 09 Jul 2011 at 9:05pm
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Dangerously close to needing to move this to politics. On the other hand, hasn't Massey Ferguson always a forien brand with "operations" in the US? Or is that just my perception?
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Posted By: JohnCO
Date Posted: 10 Jul 2011 at 12:51am
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I kind of think MF is a bit of a hybrid. Massey Harris was from Canada wasn't it. Wallis was a US outfit. Harry Ferguson was Irish I believe and made a deal with David Brown (later owned by Case/Tennico) to build tractors in the UK before he made a deal with Henry Ford to build the 9N, etc. So when Ferguson and Massey Harris made a deal, I think, although am not sure, Massey Harris Ferguson was an Iowa, USA company. Maybe because of the history with Ferguson in Europe Massey became a "European" brand. I do believe MF has built a lot of good tractors over the years but they have built some real dogs also. I still hope AGCO sees the light at some point and starts painting tractors orange again. In a way it does make sense to have one brand and one color for everything you make (JD) but Fiat makes how many different color tractors besides red and blue? I seriously doubt if AGCO will ever drop the green color on Fendt tractors, I think those European farmers would really show what they think of ole Martin if he did that. The bottom line is that AGCO doesn't appreciate the American farmer.
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: PeteMN
Date Posted: 10 Jul 2011 at 1:50am
| "The bottom line is that AGCO doesn't appreciate the American farmer." You got that right. Its amazing how many new tractors and combines JD dealers have sold in this market the last 10 years. The AGCO execs should be demoted to lawn mower sales. |
Posted By: MI8050
Date Posted: 10 Jul 2011 at 6:25am
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Posted By: AC1
Date Posted: 10 Jul 2011 at 7:23am
| As many of us have said all along: AGCO Heritage Dealerships across the country; all the tractors are AGCO's with same series, engines, etc so can avoid all that so-called model testing fees they were whining about when they killed the orange; and then offer all the traditional colors and the new ones by offering the Allis series, the Massey series, the Oliver series, the Minnie series, etc and yes even the Challenger series. This would please the customer and make AGCO unique not ridiculous. Most of us have no loyalty to AGCO, but we might to an attempt to preserve some heritage. Just my thoughts. |
Posted By: Byron WC in SW Wi
Date Posted: 10 Jul 2011 at 7:53am
| I'm done with AGCO. I sold my RT and bought a New Holland. In my neck of the woods there are goobs more New Holland dealers and you get more bang for your buck with New Holland. I gave AGCO all I had buying everything I could from them to support the orange but they stabbed me in the back. I can't imagine going back to them now even if they made orange again. |
Posted By: burly32
Date Posted: 10 Jul 2011 at 12:29pm
| I do have to aggree. I am an ALLIS guy. I own allis tractors. I am not an AGCO guy. I am more of a made in the USA person but the size of machine I would be interested in arn't made in the USA anyway. The 100 hp or so units are not made here...Doesn't make a difference what color. I do agree that it is to bad they got rid of the Orange color it is all we had left. |