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Originally Posted by redneckford taxpayer----I keep hearing how the Indians took all the money back to India-----I have been studying the Brennen Woods angle and very thing else involved in international trade. I am beginning to wonder if there was "any" money skimmed off. I wish that Alverez, Cobb or Beaver Creek would have some of their surrogates respond to where the money (Profit????) really went. If after they got the Indians to take it over it (The LONG Company) were they ever able to reverse the negative cash flow position that they were in when the Indians took over the company. If,for fact, they ever generated any profit after paying those high price salaries to those territory personnel and high interest rates to the Floor plan company. It takes alot of cash flow to run a far flung operation that FarmTrac had become. It is easy to blame mismanagement when we do not know the true facts over how and "why" Escorts took over the Company. (How much was owed to LG,UTB,and Same at that time)Some of the talk on the street is how the "Dealers" made all the profit on the US side of the pond and that the Factory was losing money shipping tractors to the US because of the change in the Dollar value versus foreign currency.(They are still shipping tractors to Europe, High Euro) Also that many foreign companies and manufactures do not understand US laws in regards to warranty payments and work. Did FarmTrac generate positive revenues at any time in the last five years or was it just a pyramid scheme that has played out since 1988 or so. How did they determine their sales price of tractors, was it based on a profit model or a production schedule model. Look at how K----- is trying to buy the market share at this time. Do you really think they are making alot of money per unit or trying to build a large share so that they can make a little on a large share like the oil company's are doing with each barrel of oil. $2 times a big enough number equals a large profit. What do you thunk????.-------- WHO KNEW WHAT WHEN!!!!!!----THAT IS THE ANSWER!!!!!----CAUSE IT IS OBVIOUS THAT THE DEALERS WITH ALL THIS INVENTORY DIDN'T KNOW WHAT WAS GOING ON!!!!!!!!!!!!!!!!!!!!!! |
Redneckford, you bring up some very good points, it appears from my research that Alverez did in fact ,do the job his company was hired to do.I met him once in a dealers meeting in sealy tex. when he became CEO,and I can tell you , he was very aggressive and efficent in his approach.he expanded the dealer network, put in place service training and sales programs that were very effective during his tenure.there were many improvements to the company.most dealers and very few workers were aware of his true role at Longagribusiness,as a result of his work at Longagribusiness, sales increased along with company profits, but it must be remembered that his stay at the company was intended to be temporary.I believe he was instrumental in helping Escorts with a floorplanning program when they purchased controling interest. the floorplanning program was good for the company and the dealers as long as it was properly managed.his purchasing of controling interest when he first came in was Not in line with the published policy of Alverez & Marsal. but I would rather not discuss details on a open forum,Red,I do not believe market factors brought Farmtrac down entirely. I think a thorough investigation will reveal a scheme spanning several years,masterminded by one person, the indians were not the culprits, however their poor business practices was definately a contributing factor. enough said for now.-----Taxpayer