Asssment of Korean Tractor Manufacturers

[Maka]

I believe Korean tractors to be some of the finest built. However, I believe there will be only a couple that survive in the USA market and below are my reasons why. Here is the order in which I feel they stack up for many reasons.

1. LS Tractors
2. Kioti/Daedong
3. Kukje/Branson
4. TYM/Tong Yang Moolson

LS Strength:

LS Tractors is my top pick for longevity. LS is big with deep pockets and as far as i can see is committed to the USA market. They have an excellent quality product that I believe is one of the best of any manufacturer in the world. High quality, ability to back up product, good prices with many standard features others charge for. LS has built relationships with companies like New Holland, McCormick and others so they have different outlets for their machines. This is good (not all good) for LS and people who purchase LS tractors.

Weakness:

LS still does not have a wide dealer network for the LS brand and low LS brand recognition. They need Territory managers who can do a good job of building this network. If their brand stays small and they lose some of their large partners it could be tough for them even with the huge financials behind them. The branding and dealer network is key to continued LS brand name longevity.

Kioti Strength:

Kioti is an incredible product with excellent fit and finish. Top quality products, long time USA presence (committed), excellent brand recognition and better management than the others.

Weakness:

Kioti is just about the same as LS on my list but they are no where near the financial strength of LS. No strategic alliances but their brand name does stand on its own where LS does no, yet. Its really a toss up with LS but I was an LS dealer and know them better so chose them. I would not quibble if the top two were swapped.

Branson Strength:

Seems to just chug along. Owners love them and they are by all accounts pretty well built. Good looking machines. Prices are good and the tractors seem stout with an overall decent reputation.

Weakness:

I would have to say small player. Please add your input on this one. I believe with good territory managers they could really grow and become a stronger player and possibly be up to the level of Kioti.

TYM Strength:

TYM has a good product. They build a quality machine (component tractor), they are long lasting and use high quality components. TYM has shown an ability to forge business partnerships like they did with Mahindra and now Cabelas.

Weakness:

TYM USA management is terrible. They make poor decisions, treat people poorly and have lost market share over the years. The current management in the USA does not understand our market and they respond slowly to market needs. TYM over the last few years has done the worst in my opinion. They completely dropped the ball on parts support and they treat people poorly.

Sad because I really saw TYM as a real player years ago but they made a turn for the worst and are not taking the proper steps to "right the ship". TYM can fix it if they will take an honest look at themselves and make some hard and costly decisions.

This is my assessment of the Korean tractor landscape. What is your list and why?

 

[GManBart]

I think that's a pretty fair assessment. The only thing I would say is that while "LS" isn't the greatest name, it doesn't seem to have been a problem for LG...everybody knows who they are now.

 

[Maka]

I agree with you and it will get there. LS is here to stay. Maka

 

[bigcut]

I believe Korean tractors to be some of the finest built. However, I believe there will be only a couple that survive in the USA market and below are my reasons why. Here is the order in which I feel they stack up for many reasons.

1. LS Tractors
2. Kioti/Daedong
3. Kukje/Branson
4. TYM/Tong Yang Moolson

LS Strength:

LS Tractors is my top pick for longevity. LS is big with deep pockets and as far as i can see is committed to the USA market. They have an excellent quality product that I believe is one of the best of any manufacturer in the world. High quality, ability to back up product, good prices with many standard features others charge for. LS has built relationships with companies like New Holland, McCormick and others so they have different outlets for their machines. This is good (not all good) for LS and people who purchase LS tractors.

Weakness:

LS still does not have a wide dealer network for the LS brand and low LS brand recognition. They need Territory managers who can do a good job of building this network. If their brand stays small and they lose some of their large partners it could be tough for them even with the huge financials behind them. The branding and dealer network is key to continued LS brand name longevity.

Kioti Strength:

Kioti is an incredible product with excellent fit and finish. Top quality products, long time USA presence (committed), excellent brand recognition and better management than the others.

Weakness:

Kioti is just about the same as LS on my list but they are no where near the financial strength of LS. No strategic alliances but their brand name does stand on its own where LS does no, yet. Its really a toss up with LS but I was an LS dealer and know them better so chose them. I would not quibble if the top two were swapped.

Branson Strength:

Seems to just chug along. Owners love them and they are by all accounts pretty well built. Good looking machines. Prices are good and the tractors seem stout with an overall decent reputation.

Weakness:

I would have to say small player. Please add your input on this one. I believe with good territory managers they could really grow and become a stronger player and possibly be up to the level of Kioti.

TYM Strength:

TYM has a good product. They build a quality machine (component tractor), they are long lasting and use high quality components. TYM has shown an ability to forge business partnerships like they did with Mahindra and now Cabelas.

Weakness:

TYM USA management is terrible. They make poor decisions, treat people poorly and have lost market share over the years. The current management in the USA does not understand our market and they respond slowly to market needs. TYM over the last few years has done the worst in my opinion. They completely dropped the ball on parts support and they treat people poorly.

Sad because I really saw TYM as a real player years ago but they made a turn for the worst and are not taking the proper steps to "right the ship". TYM can fix it if they will take an honest look at themselves and make some hard and costly decisions.

This is my assessment of the Korean tractor landscape. What is your list and why?

Maka,
Thanks for an excellent analysis of the products, the companies behind them, and the network of Dealers who support them. What I especially appreciated is that you spared us the: I knew a guy whose uncle had a friend who bought product X 5 years ago and....You get the picture.

Since you were an LS Dealer, I personally would appreciate an expansion of your thoughts on their Dealers, how they select them, the financial incentives, cooperation or lack between dealers, etc. I'm a little frustrated with how they (LS) guard where their dealers are located; who their dealers are..etc. They require that you put in your zip code and then give you one dealer to contact, based on zip. I guess their trying to prevent prospects from creating a competitive bid situation, by NOT providing a listing of dealers to choose from. The foolishness is that, if I don't like that dealer, I may just go to a competitors product with a dealer who is more appealing. The one (LS dealer) nearest my location hasn't updated his website in a couple of years and doesn't appear to have much of a presence. Appears to be wed more to McCormick, if I remember correctly. That doesn't exactly instill confidence in me in making any kind of long term relationship. I'd welcome any thoughts you might have on this. If you think it's to specific and might bore others, you can PM me.
Thanks,
John

 

[GManBart]

Maka,
Thanks for an excellent analysis of the products, the companies behind them, and the network of Dealers who support them. What I especially appreciated is that you spared us the: I knew a guy whose uncle had a friend who bought product X 5 years ago and....You get the picture.

Since you were an LS Dealer, I personally would appreciate an expansion of your thoughts on their Dealers, how they select them, the financial incentives, cooperation or lack between dealers, etc. I'm a little frustrated with how they (LS) guard where their dealers are located; who their dealers are..etc. They require that you put in your zip code and then give you one dealer to contact, based on zip. I guess their trying to prevent prospects from creating a competitive bid situation, by NOT providing a listing of dealers to choose from. The foolishness is that, if I don't like that dealer, I may just go to a competitors product with a dealer who is more appealing. The one (LS dealer) nearest my location hasn't updated his website in a couple of years and doesn't appear to have much of a presence. Appears to be wed more to McCormick, if I remember correctly. That doesn't exactly instill confidence in me in making any kind of long term relationship. I'd welcome any thoughts you might have on this. If you think it's to specific and might bore others, you can PM me.
Thanks,
John

I'm not sure LS is trying to guard anything, I think they just have a poor search engine/dealer locator.

 

[DK35vince]

Its difficult to keep track of who makes what.
To my knowledge LS is currently supplying the New Holland Boomers.
They made the McCormick CT series from 07-2010.

Kioti/Daedong supplied the Bobcat tractors from 08-2013.
2011- current McCormick X10 series compact tractors are Kioti/Daedong

 

[bigcut]

GMan,
I never thought about it that way...You'd think at least they'd let you pick a mileage perimeter, say 25 mile radius, or whatever. At least you could visit more than one, and let the buyer choose which is more desirable.

 

[DavesTractor]

This is a good friendly conversation without irrational brand loyalty comments. Awesome.

I'm most familiar with Branson and TYM. Branson builds a great tractor, well featured, priced correctly. But they seem reluctant to make the huge capital investments needed to support parts and service in the manner needed to take the next step. Dealers hate to be embarrassed by parts problems, and will drop a brand for that reason. I'd say Branson is one of the best tractors out there, but in need of more commitment from Kukje. If they get that commitment, a higher volume of better dealers will take on the brand...and the tractors will sell themselves.

As to TYM, they also build a quality tractor. But I suspect they sell many more TYM's via Mahindra then they do via TYM USA. Mahindra has a commitment to parts and that might very well be the best place to order TYM parts. TYM needs to decide if they really want to retail in the USA or if they just want to manufacture for Mahindra. They seem conflicted in that regard. If they get clarity and ambition, they ought to be able to sell a nice tractor for quite a bit less than Mahindra, as they would cut out the middle man. For fairness I must say that the models aren't exactly the same. TYM builds to Mahindra specifications, but we all know they start with the same basic models.

I know a little about the LS and Kioti as we sell against them, and they are both good tractors.

 

[GManBart]

GMan,
I never thought about it that way...You'd think at least they'd let you pick a mileage perimeter, say 25 mile radius, or whatever. At least you could visit more than one, and let the buyer choose which is more desirable.

Yeah, that would be much better. The advanced search engine is a bit better....sometimes you can scroll, and zoom to get the names if other dealers. Heck, at least show the closest three dealers, right?

 

[batwing]

I am very happy with my TYM but have not had any problems, I ordered a rear view mirror and it took a long time to get, I was told they were upgrading there warehouse and things will get a lot better, time will tell.
Ron