Farmtrac Closes Their Doors!

[HayDR]

If 40 people are working, even on a "volunteer" basis, then it is not totally true that they have closed their doors (unless they volunteers are working outside).. My thinking is these people (the volunteers) wouldn't bother if they didnt see some reasonable possibility of a future with the company. No doubt there are talks and negotions taking place. We will know more soon.

I'm not ready to write them off yet, they may just pull through. In the mean time, I am willing to make some great deals on some brand new FARMTRAC tractors that I have in stock!

• First there is nothing wrong with the engineering or build of Farmtrac products
• Realize Farmtrac is just a marketing name and not a true tractor manufacturer.

Unless there is a favorable marketing name, assets valuation, market position and or competitive advantage there little interest in anyone purchasing FARMTRAC. What good are their contracts with their manufacturers because they are likely null and void by now. Another company already has a dealer network and can sign exclusive agreements with Farmtrac's manufacturers straight up and not have to pay one cent. Why would someone pay to be in a negative situation? Because of the way this has been handled the Farmtrac name, going concern and dealer net work has been disparaged. The dealers and the banks may take legal recourse against Escort of India.

 

[Bird]

Guys, someone is editing my post and has deleted one or two. Sorry if my answers and insight are not liked here. If you have a direct question I will try to answer it.

New here and seems I don't understand the rules for correcting information that is in error.

I love the way you can go back and remove things. It is like they never were said.

Tim

Now I can't say for sure that hasn't happened, but when a moderator does something like that, he normally notifies the other moderators and I can't find any evidence of any of your posts being edited or removed.

 

[Tim C.]

Not a good move based on a phone call I received last night.

Interesting call. Filled in a few blanks on the back side. Don't know if the "not even zero" could still kill the deal. No one wants to step up and take the hit on that one.

As I said, Feb. 1 is the key day.

Selling now will get you the market low for sure. If you think you are at the bottom of the market the only way is up. After everything calms down (remove emotions from the market) people will see that a used Farmtrac is a good value with aftermarket/Montana/Deutz parts and service support. LS and Same Deutz have too much invested to let customers be unhappy with their product. No matter what name is on the hood.

Tim

 

[Bob_Young]

Thank Heaven for this site! Was looking at either a Farmtrac 545 or a JD 5103 to replace the aging Ford 2000. Prices very close. With news like this, I think the Green Guys will get the bux... They're much closer anyway.

Sorry to see the old 3 cylinder Ford designs pass into history
Bob

 

[bluechip]

I am not a lawyer, international or otherwise, but I'm thinking that generally, the parent company is not liable for the obligations of a subsidiary. So suing Escorts in India doesn't seem likely. A lawyer may be able to find some warranty laws that might could be held against Escorts (or LS) as the manufacturer since Farmtrac NA is listed as a subsidiary and not as an independent importer, but that seems a long shot.

As I understand it, the brand name FARMTRAC is the property of Escorts. Farmtrac NA LLC is a subsidiary of Escorts, although not wholly owned. If Escorts is going to maintain a US presence, they will have to either prop up Farmtrac NA (as will the other partners) or perhaps they will re-enter the market in a new entity. The LG component of the product line is another consideration and as has been posted, already represented in the USA by other importers.

On a more positive side, it is not out of the quesiton that a new group, or a realignment of some of the existing parties, could take over and continue the operations of the current company, or form a new one. It will largely depend on what the creditors want to do. They could force Farmtrac NA into bankruptcy but even that dosesn't absolutely mean the end.

The bottom line is that we don't know yet. We think.... We have opinions.... but to announce that "Farmtrac has closed thier doors" is wrong, or at least premature as of this date and time.

There is certainly cause for concern for owners and frankly even more so for dealers. I guess Tim knows somehting is going to happen on the first, thats only a couple more days...Then maybe we will have some knowledge.

 

[KrumpsBrother]

Not a good move based on a phone call I received last night.

Interesting call. Filled in a few blanks on the back side. Don't know if the "not even zero" could still kill the deal. No one wants to step up and take the hit on that one.

As I said, Feb. 1 is the key day.

Selling now will get you the market low for sure. If you think you are at the bottom of the market the only way is up. After everything calms down (remove emotions from the market) people will see that a used Farmtrac is a good value with aftermarket/Montana/Deutz parts and service support. LS and Same Deutz have too much invested to let customers be unhappy with their product. No matter what name is on the hood.

Tim

Any idea where I'll be able to get Escort parts?

KB

 

[Tim C.]

Any idea where I'll be able to get Escort parts?

KB

Which model?

There are people working on the Escort part problem this week. We should have an aftermarket parts source soon if needed. See last comment below.

The current models that could be the most problematic are the 675, 665, 555, and 435/535.

555 is listed only because of the wet brake issue.

435/535 because of the Escorts engine. This concerns me the most.

675 should be able to source parts for engine from Perkins and Trans from Deere.

665 trans from Deere.

There are enough sharp dealers out there to run these tractors forever.

Don't think it is going to matter. Everyone in the industry wants Farmtrac to live. They have 5000 tractors on the ground to sell. No one wants them to be dumped on the market. It would ding the income statements of every company. Yes, including Deere. Plus, it would be death sentence to all tractors from India. Yes, including Deere's 03 series.

Tim

 

[KrumpsBrother]

Which model?

There are people working on the Escort part problem this week. We should have an aftermarket parts source soon if needed. See last comment below.

The current models that could be the most problematic are the 675, 665, 555, and 435/535.

555 is listed only because of the wet brake issue.

435/535 because of the Escorts engine. This concerns me the most.

675 should be able to source parts for engine from Perkins and Trans from Deere.

665 trans from Deere.

There are enough sharp dealers out there to run these tractors forever.

Don't think it is going to matter. Everyone in the industry wants Farmtrac to live. They have 5000 tractors on the ground to sell. No one wants them to be dumped on the market. It would ding the income statements of every company. Yes, including Deere. Plus, it would be death sentence to all tractors from India. Yes, including Deere's 03 series.

Tim

Mine's a 675 DTC. I'm not worried so much about the Perkins engine, just when the time comes I'll be able to get clutch parts.

Tim, do you know if Farmtrac ever finished the service manual for the 675's?
If so, what's the chances of getting my hands on a copy or CD??

Thanks for helping, KB

 

[HayDR]

Don't think it is going to matter. Everyone in the industry wants Farmtrac to live. They have 5000 tractors on the ground to sell. No one wants them to be dumped on the market. It would ding the income statements of every company. Yes, including Deere. Plus, it would be death sentence to all tractors from India. Yes, including Deere's 03 series.

Tim

This situation is totally about cutting loses. What's to stop the dealers from saying come get these tractors or reduce the price by 25%? Every dealer I've talked too says they will not accept the previous pricing structure. There is very little consumer confidence now and dealers know that so Farmtrac better have race horse deals or John Deere coming in and saying we will take over. It is a train wreck.

 

[Tim C.]

Mine's a 675 DTC. I'm not worried so much about the Perkins engine, just when the time comes I'll be able to get clutch parts.

Tim, do you know if Farmtrac ever finished the service manual for the 675's?
If so, what's the chances of getting my hands on a copy or CD??

Thanks for helping, KB

No, not to my knowledge.

I don't remember the clutch now. But Farmtrac purchased it so someone made it besides them.

Tim