Farm Equipment - Know what ticks me off the most about Agco

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Know what ticks me off the most about Agco

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Category: Allis Chalmers
Forum Name: Farm Equipment
Forum Description: everything about Allis-Chalmers farm equipment
URL: https://www.allischalmers.com/forum/forum_posts.asp?TID=3812
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Topic: Know what ticks me off the most about Agco

Posted By: ILGLEANER
Subject: Know what ticks me off the most about Agco
Date Posted: 16 Nov 2009 at 10:19pm

I talked to the AGCO vice president at th FPS in Sept. We were standing there looking at the 3 tractors there on display. Orange ,Red and Yellow. I asked this guy face to face. How long before they get rid of the orange tractor and only sell the red and yellow??? He said " What makes you think that? That isnt going to happen. That was in the first week of Sept. Now the 3rd week of Nov. the dealers get a letter stating they are no long going to make the orange tractors after this year. That is honesty that I want from my tractor company. Go out and spend 150,000 on one of our tractors we sure would like to get rid of the ones we have built. And then you people have the gall to say ,I should go buy a red or yellow one because they are the same thing? SO I believe the guy when he says they arent going to quit making the silver combines? When are the dealers going to find that one out ? Next year? couple years? They will just lie to us farmers and the dealers until they send the letter out,saying the same thing about Gleaner.

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Replies:

Posted By: Austin(WI)
Date Posted: 16 Nov 2009 at 10:26pm

There is an old saying: " Money talks...and bullsh*t walks!" I hate to see the orange tractor line go...really irks me...AGCO tractors are the spawn of Allis-Chalmers and now that is all going to end. There are money hungry bastards at the top that care nothing about loyalty. They care about one thing $$$$$$$...they could market their orange tractors a hell of a lot better then they are. It is some little Hitler prick over in Germany that is getting a fat head and is going to sever a lot of loyalty to this brand. AGCO needs to change the acronym...AGCO: All Great Companies Ostracized

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"Better By Design"

Posted By: tominpa
Date Posted: 16 Nov 2009 at 10:53pm

A lot of people are bitter. But you know something I dont think they care what we think. AC died in 1985. We got to face reallity. We went Green. i dont have any confidence in the new leadership of Agco. Allis Gleaner Co. my foot. Try massey challenger. maybe fengt.

Posted By: Oldoug
Date Posted: 16 Nov 2009 at 11:12pm

IG, if they succeed in killing the orange tractor you can bet the Gleaner will be next. You will see a letter to the dealers saying something to this efffect. Do to a changing market we can no longer promote three combines and will be phasing out the Gleaner line. We at Massey-Challenger hope you understand and appericate your past years of Gleaner business. All the Gleaner features can be found in our new wonderful line of Massey- Challenger combines.

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Posted By: JimIA
Date Posted: 16 Nov 2009 at 11:35pm

The only thing that keeps me thinking the Gleaner is going to stay is they have been doing alot of updates to them in the past few years. If they planned on quitting Gleaner they would just leave the transverse machines alone and not update them, at the same time push everyone to the axial combines. This is not the case. The transverse is a buy it self machine yet they have been making alot of improvements to it. Yes they came out with a new series of tractor but that is the same as the red and yellow tractors.

Jim

Posted By: Byron WC in SW Wi
Date Posted: 17 Nov 2009 at 4:55am

IG I got a letter from Todd Stucke saying the same thing, essentially, in June so I got my ST stuff. That ticks me off too. So either they are lying, (WHICH I HATE), or they are inept at planning for the future which tells me they won't be around long anyway.

Posted By: Spud
Date Posted: 17 Nov 2009 at 9:23am

I am still baffled at the amount of people that are angry that Agco wants to make money. Isn't that what a corporation is supposed to do? When they make money, they stay in business and continue to make more money and product.

Allis Chalmers didn't do a very good job of it. That is why AC died in 85. Maybe if they cared more about $ they would still be here.

I disagree with ending the Orange paint too but I don't hate Agco for it.

Posted By: Byron WC in SW Wi
Date Posted: 17 Nov 2009 at 9:49am

Spud. I think the thing which I think, which you probably don't, is that this is not a cost saving measure. And, I don't believe their numbers. That's where we stand. To me the only thing that makes sense is that it's a European wanting a European name in NA, the glory with being with CAT and wanting a big company for pride. Spud, if it were a cost saving measure they would've dumped CAT a long time ago. I think they made money with CAT for the first time last year and it was modest. AGCO orange has outsold red and yellow 4 to 1 in large tractor sales. How is it a cost saving measure?

All corporations do this. They put money and expenses in places with their accounting to justify moves they want to make and manipulate stock price. They say they lost money on manure spreaders but they haven't changed the design for 20 years and they still sell them. Where would the expense be? Where do you think they get the money to pay their multi million dollar salaries? It comes from the NA sales because, as of now, US corporations don't pay tax on income from foreign sales. So they put their expenses on the NA books to show a loss or small gain so they don't have to pay as much tax.

Either way. We all may be at a minority but it's my opinion that this will hurt their NA sales at a time where they don't need any more pain. Their stock price has been devalued and has gone down about 60% from it's high. They've just invested millions in a new tractor design and the economy tanked, (think AC). The US dollar is going to continue to devalue increasing tractors prices in the US. This will make the very little price difference between them and Deere disappear and go negative. That will effect sales. They most likely won't be in a position to open a new US factory, with liquid capital being a premium, and will become more of a global brand and less of a US brand. Their only US made product that sells overseas will do well, (CAT Tracked stuff), but not enough to overcome NA loses. This, along with the tax code changing making foreign sales taxable, will prompt AGCO to move it's headquarters to Europe. Maybe at this time, after seeing NA sales dwindle, they will sell naming rights and parts sales for old AC, Oliver and MM equipment to get some capital. Anyway, it's just a guess but as they say history repeats itself.

Posted By: Spud
Date Posted: 17 Nov 2009 at 10:20am

Deere is off about 50% from its high. Not sure about CNH but it is not a good point of reference as it involves cars as well.

This tells me that they are in that same general industry trend.

I believe they brought out Challenger because they could tie it to Cat. Like them or not, Deere are good marketers with a strong brand name. The Cat name is just as famous. I am not sure how it is working so far. I know where I am from, there are people buying them that wouldn't look at a Massey after the disaster of the MF 2000 series.

If you look at a Challenger kind of squinty, you can almost pretend it is a MM!

Posted By: ILGLEANER
Date Posted: 17 Nov 2009 at 10:30am

Spud,

I think that we are saying the same thing in a different way. I agree a buisness needs to tighten there belt when the economy is slow. But me as a farmer isnt going to drop my best producing ground because its out of the way and only 100 of my 3500 acres. Would that be smart? That is what AGCO is doing. If you want to drop something in NA drop the worst seller not the best seller. If you want to drop a combine drop the worst not the best seller. So you cant justify what they are doing as a buisness decision for NA ,it makes no sense. And I am man enough to appoligize to you if I said something to offend you. I am sorry for that. But I dont like it when someone tells me what I should or shouldnt do ,when they no nothing about my situation.

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Education doesn't make you smart, it makes you educated.

Posted By: Spud
Date Posted: 17 Nov 2009 at 10:44am

No worries ILGleaner. I know you must be annoyed as you are one of the few on here that actually buys new Agco Gear on a regular basis. and Thank you.

FWIW I will be watching to see of Agco Allis in Argentina gets dropped. I believe they are an Agco tractor with a Deutz engine aren't they?

Posted By: JohnCO
Date Posted: 17 Nov 2009 at 10:24pm

It makes good fiscal sense to open a tractor plant in the US. With the Euro worth $1.50, everything they import from overseas is costing 50% more then it did a couple years ago.

Aren't the 60 - 100 HP JD tractors still built in Europe? And I think the compact JD's are made in the southeast US with Yanmar engines. I just read a few weeks ago JD is expanding in Russia with a big parts distribution center and new lines being sold. I bet the are all green and yellow!