Talked to an AGCO rep today

I see AGCO closed above $51 a share today.  Quite a premium from a couple years ago.  I'd sooner have orange tractors than the premium on my stock though.    Too bad "ol Marty" doesn't get it and can only see $$ signs driving his decisions.  I guess that keeps him a job though.  Thanks for sharing this story, I found it quite insightful.

I agree with everyone and their concerns over losing the orange heritage with AGCO.  On the other hand, if the company isn't strong and profitable it will go away as well.  We have two dealers pushing the Massey brand hard in my part of MI. right now and it seems as though every so often another AGCO store is adding MF.  At some point maybe I would consider one, they are supposed to be a heck of a nice tractor, in the meantime if the 8050 expires it will get a Magnum to replace it.  How much can it really cost agco to offer orange paint and decals?  The way their dealer system has been setup with some being Gleaner, MF, AGCO, Challenger, White planter or just AGCO parts needed revision.  An AGCO dealer needs to handle the brands products period.  All of them in one house, for the sake of simple.  They have left alot of areas uncovered because of this. 

JohnCO wrote: Went to the Colorado Farm Show in Greeley and noticed a gentleman with an AGCO logo on his shirt, it also says "Your Agricultural Company" so I, of course had to set him straight.  He's been with the company for several years and was well aware of the meaning.  I told him I thought ol Marty was a moron, to which he replied " He does have a different outlook for the company.  I asked what he thought the real reason for dropping the orange line and he said the company decided they couldn't afford to support three lines of tractors in NA.  I pointed out the Valta color choices in Europe.  He didn't disagree but pointed out Marty's goal is to drive the stock price up, which he has succeeded, at least so far.  Said the main concern from dealers and farmers was in the midwest, which I pointed out was AGCO's biggest market.  He said yes but MF is a world market.  We didn't discuss South America.  Anyway, seems like a nice guy, I feel sorry for him having to listen to us Allis guys complaining.  BTW he does check out this site, guess it's well known by AGCO employees. Oh Yeah, he mentioned they are opening a large tractor plant somewhere in the US.

 

Lonn,

I'm slow so it takes me awhile.  But, I've learned a lot, as far as I'm concerned, from the recent Wall Street bailouts and AGCO is that they don't care anything about their product or their consumer.  All Wall Street, (non privately owned companies), care about is stock price.  I have no doubt that on paper cutting AGCO branded orange tractors saved them some money.  The question is how much will it cost them in the long run?  Now I put a premium on what kind of company it is before I buy it's equipment.  It's why my hay equipment is Vermeer now.

AGCO's stock price is only going up, IMO, because of commodity prices and the BS coming from the stock friendly types at AGCO.

Here's an interesting read on AGCO.  It basically lines up how AGCO made acquisitions at far below value and sold off assets to make money.  I don't know if AGCO knows how to make a product and make money on their own.  I think their scared a little but eventually their going to have to make their own products and advance them through R&D on their own.  The new DT, RT tractors and Super 7 combine are what their going to have to do to compete and I think their realizing that it costs more to R&D and make then it does to buy and gut.  Margins are lower and prices will go up.
uploads/160/AGCOhistory.pdf

Either way I think their screwed.  Most AGCO buyers have some understanding, at least, of the AC/Deutz-Allis/AGCO-Allis/AGCO/MF transition.  Tractors should last 20-30 years or more and when you buy an AC and before the life of your tractor has extinguished the company you've bought it from has essentially changed directions 4-5 times you get leery of it's future.


Edited by Byron WC in SW Wi - 26 Jan 2011 at 7:47am

With all this talk of "World Company" how is the orange tractor not a world tractor? Didnt they get sold in south america and i think austrailia and some other countries.

I agree 100%. Allis-Chalmers was a worldwide company and that is what made them who they were. Unlike AGCO they sold their product line all around the world with either the Allis-Chalmers name on it or the Gleaner combine name, and even they said AC on them. AGCO must think that the AC name had no effect over seas but there is proof that it did. Just look at forum members like Dutchboy Johan from the Netherlands, he is very much an AC fan just like all of us and would probably love to have the option to buy a orange tractor that supported the AC lineage as well. We must all be missing AGCO's point but it just seems to me that they could have a better impact if they just sold things under the AGCO or AGCO Allis name, along with Gleaner, rather than the 6 or 7 companies they have now. What ever their point is. them not including their AC heritage in it has done made up my mind way in advance. If the time comes that I would ever need a different tractor I would go out and buy an old Allis-Chalmers than a new Massey because that is just who I am. I do not approve of AGCO's stupidity therefore I will not buy any new equipment or tractors from them. The only thing that they will get me to pay for is parts to fix and maintain my old AC (and Oliver) tractors. Maybe if more people did this rather than to give in to MF they would get the point and perhaps change some things. But until then, not meaning to steal someone's motto, but ORANGE IS GONE AND SO AM I.  

Most of the tractor is black, with Colored hood, fenders and other "do-dads"  If the state and county can order tractors in white, yellow and other special colors, why cant we get them in orange?  AGCO wants you to buy off the lot, but if you order a tractor custom, I'll bet you could get it chromed.  

Daehler:  The Agco Allis tractors sold in South America are painted a Deutz Green as the Deutz tractor was very popular there.  It is not really an AC connection other then Deutz owned Deutz-Allis.

AllisChalmers37 wrote: REDLINE, I can predict the future and it is not good.

Edited by redline - 26 Jan 2011 at 1:49pm

Me thinks Marty speak with forked tounge

Lonn wrote: Spud wrote: Daehler:  The Agco Allis tractors sold in South America are painted a Deutz Green as the Deutz tractor was very popular there.  It is not really an AC connection other then Deutz owned Deutz-Allis. You mean to tell me they would sell a certain colored tractor in South America because that is what was popular there? Perish the thought. This must be stopped. That's not global thinking. Surely you meant they were selling red or yellow tractors cause red and yellow are global.

ALinIL wrote: I would like to comment, but it might be taken the wrong way.  I am an Allis lover, my blood runs ORANGE.  However, I own Agco stock and hope to make a profit on it.  As far as the Agco product NOW is concerned, I would not own it.  AGCO is a modern corp and as such, it will do anything it can to improve its bottom line.  "Smarty Marty" has set  the course and will either buy or sell portions of the corp to improve the bottom line.  Also keep in mind that there is nothing saying he might sell the corp as a whole or even move the headquarters out of the US.  Allis Chalmers is not dead as "we the loyal customers" will not let the name die. - AL

We won't let Allis Chalmers die, but the direct decendant is dead in many of our eyes. I still have this Gleaner fetish, but I have no intention of owning anything else by Agco again, unless it actually says AGCO on the serial plate and decals. 

Edited by redline - 26 Jan 2011 at 4:50pm

Byron, Agco like every other public company is required by law to increase shareholder value.  Just like your mission is to increase the value of your farm.

Spud wrote: Byron, Agco like every other public company is required by law to increase shareholder value.  Just like your mission is to increase the value of your farm. The article seems to say that they did not do much R&D or manufacture much.  Then later it states that they are starting to do more with the MF aquisition.  I would say that they do plenty of R&D now with the new large series of tractors as well as the large Challenger.