New Holland to switch to Korean manufacturer?

[JerryK]

Sounds reasonable. It would be hard to cram HST/CVT stuff into a LS cab'd tractor. Gonna take time... Gonna drive some service departments bonkers for some years, though....

 

[Turbys_1700]

I hope this works out for NH but it seems to me that by going the LS route they are not differentiating themselves from other suppliers/marketers. Just another re-badged LS. With Shibaura they had a machine that was not an Iseki or Yanmar. This might increase sales of current models in the line that are Shibaura supplied until the supply is exhausted.

I can say that this market is so competitive that companies look for the least cost supplier. I think that this has what has happened here.

 

[beenthere]

Would (wouldn't) this change include the Case-IH line as well?

 

[MessickFarmEqu]

I hope this works out for NH but it seems to me that by going the LS route they are not differentiating themselves from other suppliers/marketers.

Yes and no. NH doing it does back the product by a larger company with deeper pockets than ever has been done before. The ability of CNH to support a product, provide quality low cost financing, dealer floor planning, etc is without a doubt much better than any of the other brands LS has supplied.

The initial models are basicly reskined LS models. Its hard to make a clear comparion of pricing because there is so much more involved in the complete package than the simple invoice price for just the tractor, but on the surface they look to cost marginly more. The other companies doing LS product have a very minimal impact on the market current... like 1-2% share, their dealers are often more like small car lots than an AG dealer.. so I don't think a small pricing difference will be a issue for us.

I do think it will workout for CNH, but I'm still not nuts about it. They continue to be 95% of the cost of a Kubota. If your going to try and complete with the market leader on price you have got to show more of a cost difference than that. I don't see what the real competitive advantage will be... time will tell.

 

[DavesTractor]

Yes and no. NH doing it does back the product by a larger company with deeper pockets than ever has been done before. The ability of CNH to support a product, provide quality low cost financing, dealer floor planning, etc is without a doubt much better than any of the other brands LS has supplied.

The initial models are basicly reskined LS models. Its hard to make a clear comparion of pricing because there is so much more involved in the complete package than the simple invoice price for just the tractor, but on the surface they look to cost marginly more. The other companies doing LS product have a very minimal impact on the market current... like 1-2% share, their dealers are often more like small car lots than an AG dealer.. so I don't think a small pricing difference will be a issue for us.

I do think it will workout for CNH, but I'm still not nuts about it. They continue to be 95% of the cost of a Kubota. If your going to try and complete with the market leader on price you have got to show more of a cost difference than that. I don't see what the real competitive advantage will be... time will tell.

So would it be reasonable for a NH dealer to also take on LS? You would have some identical tractors, save for the shade of blue, and better pricing. I'd think NH would address this contingency in their agreement with LS. Any thoughts on that? The underlying question is....will LS continue to market themselves as LS in the USA, or will the LS dealers be left without a brand?

 

[Grateful11]

If they do this you know they're not going to drop the price on the NH's by 1/3
which it about what it would take to be inline with the LS and McCormick. We
could have bought a similar McCormick for about $5K less than the Kubota
L3940 we bought. Deere, Case IH and NH were about $4k-6K higher than the
Kubota. First non-red tractor ever on the farm of over 100 years but I bet
it's not the last orange tractor that takes up home here.

 

[jinman]

My NH dealer has been exclusively Ford/NH for as long as I can remember. I think they opened/moved to the current location in the 1960s. Just about a month ago, 10 new shiny red Mahindras showed up on their lot. Suddenly, they are a two-brand dealer. I knew something was up when I saw that.

I just wonder if the development of the CVT transmission and its entry into the compact line has not been extremely expensive for NH at a time when corporations in general are struggling just to survive. That transmission and line of tractors has not sold like hotcakes in my view, and that's gotta hurt even more. While Deere and Kubota have diversified their products with the RTVs and full line of lawn care models, NH has remained with only their core line of equipment. In my opinion, it's much easier to sell a compact tractor to a person who has been buying lawn tractors and UTVs from you than one who is new to your dealership and brand. I just think NH has to work harder to sell tractors and it is showing.

 

[joes_427_vette]

I'm happy I have a 150 hour 3 year old TC 55 in my garage. The future quality will only go down hill as unknown brands appear and cut prices. I don't want a KIA or a rebadged Korean NH. If I slide into a cab tractor I'm going green.

 

[bp fick]

I'm happy I have a 150 hour 3 year old TC 55 in my garage. The future quality will only go down hill as unknown brands appear and cut prices. I don't want a KIA or a rebadged Korean NH. If I slide into a cab tractor I'm going green.

I know exactly what you are saying and the sentiments behind it, but one will still have to be cautious. I expect more production to be shifted to China and India (even Green tractors). I don't know if that is much comfort. Future buyers will have to consider many factors.

 

[CurlyDave]

The future value of existing NH equipment depends a lot on the NH commitment to parts. If they merely buy a large quantity of parts from their previous supplier they are going to run out sooner or later.