Here we go again.....talk about CNH

http://www.foxbusiness.com/markets/2011/02/20/agco-ceo-early-upgrade-market-demand-forecast/?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+foxbusiness%2Flatest+%28Internal+-+Latest+News+-+Text%29 I sure wish he would keep quiet, and I seriously hope that CNH never succombs to buyout pressure. That would be devastating to competition and I don't think the CNH customers will take kindly to having MF crammed down their throats, either. I do get a chuckle that they have to explain to their readers what a combine is. Frightening to think of the uneducated people that are investing in companies and helping to charter the companies' courses.

Edited by redline - 21 Feb 2011 at 8:25am

He is definitely more interested in the foreign markets than he is NA. Sounds like he is shying away from all the new emissions regulations waitng for the other 2 companies to come up with solid technology to comply. Agco definitely doesn't want to be on the cutting edge of that technology. Thats quite a different approach for a CEO to take a "wait and see attitude".

A lot of well thought out comments here.  The bottom line, as I see it, is that if AGCO could somehow buy CNH, and get it by government approval, it would become such an unwieldy mess that no one could herd it into a profitable operation.  CNH already has two NA combine lines, plus at least one more in Europe and perhaps more.  AGCO also has two, or three if you count the yellow ones cat sells, plus at least one in Europe.  An AGCO-CNH combined company would have to drop at least half the brands of combines and several tractor lines.  Just doesn't make sense, except perhaps in Marty's belief in world domination of the farm equipment business.  MF is big in Europe and getting a bit stronger in NA but what about SA and the rest of the world?  I know Buick is one of the biggest selling cars in China, GM made the right decision to concentrate on one brand, makes sense to me that if AGCO, in it's present form would promote just a few brands world wide, MF, Fendt or Valtra and maybe an orange version of the others, they would have a pretty large market share.  CaseNH, except for Ford, has never had that much market share in Europe and although it is growing, I looks like it isn't all that profitable.  This next decade is going to be a very interesting time for the farm equipment business.  I just wish I had more confidence in AGCO to survive.

Edited by JohnCO - 21 Feb 2011 at 1:03pm

Spud, I don't think it is always a case of poor management.  It is often a case of market share/competition.  Some of AGCO's purchases were of good companies that just couldn't grow without more financial input, in other cases the owners wanted to get out of the ag equipment business.  AGCO was wise or just plain lucky to fall into some of these deals.  The one with MF is still a big ? mark.

Exercising their rights to do business is one thing, but gutting a company and ripping the industry out of a community or region and scrapping the rest doesn't necessarily equate to good image and relationships. Yanking the props out from under something that people believe in, and have planned their future around tends to upset folks. True, I am looking at this from a more emotiomal standpoint than most, and things have to change with time, but not doing market research on North America before ending a brand and trademark is just plain poor business. Putting your future into a brand that had very little respect is a poor decision.

I've beat this whole Agco thing around in my head for ever, and the conclusion I've come to is this. I am an Allis Chalmers fanatic, not an Agco fanatic. In 1985, a good thing went down the toilet, and Allis Chalmers never has been or ever will be the same since. I just hope and pray that I'll be able to get parts for my 1985 and prior Allis Chalmers equipment for a good number of years, but other than that I could really care less what "AGCO" does. They are not Allis Chalmers, and recently distanced themselves farther than ever from Allis Chalmers. If I do ever get in a position to buy a new tractor or piece of farm equipment, I'll look at Agco the same way as the other brands, the best buy for the money will get my business, no favortism to Agco whatsoever. They aren't any more Allis Chalmers than John Deere is. Just my 2 cents worth.  Darrel

Darrel I think you pretty much hit 'er on the head.