How did Kubota get such a large market share ?

[Agvg]

I had agricultural tractors in mind.

 

[art]

They build a premium tractor in the ag size at a utility tractor price for farmers so for many smaller farms they can have a 16 speed power shift at 90 pto horsepower.

 

[MessickFarmEqu]

Hmmmmm.... Hadn't heard that. Next time I'm at the Kubota dealer I'll check one out and report my findings. If the powertrain is built by another company it'll be stamped into the casting somewhere.

The M7 does use a ZF transmission and Spicer axle. Massy also uses the same rear. The rest is all Kubota. This is new, because generally they do build and engineer everything. Right now, a good CVT is not in the Kubota portfolio and it was probably an easier entry into this space to take someones proven transmission rather than sink money into their own. I've heard $50 million thrown around as the amount that it costs to design a new transmission from scratch. Having been in the M7, there is a lot of Kubota in this tractor. It does not feel or look rebadged in any way.

 

[Agvg]

Is the rear Kubota or ZF?

 

[MH8675309]

Like JR Ewing used to say "Quality Darlin,, Quality

 

[Agvg]

If they could have it I'm sure the M7 would had Fendt transmission and not ZF.

 

[MinnesotaEric]

The real trick for this industry is figuring out what the market will want when the baby boomers are gone. there is a huge population of americans settling on semi-rural plots- people that grew up with gardens, animals, relatives in farming; these people want a touch of that, and the compact tractor lets them be an estate owner etc. but what is next? will the kids that grew up in the MTV 1980s yearn for 10 acres and a tractor? we may see a glut of 200 hr kubotas in 10 years as estate auctions run rampant....the CUT parade is at it's peak, and many have missed the profitable portion of the show. That is how business is....I will be interested to see who wins the next round.....

Considering this remark is from 12/2004, I think spm22's lucid thought about the looming demographic cliff was very forward-thinking as some 39% of boomers hope to retire into a small-town or rural setting. What wasn't considered was that the boomers will also leave behind the largest wealth transfer in human history. Case in point fully 1/3rd of the real estate on my lake is already sitting in trusts. So long as the trusts remain funded, the kids will be able to participate in their parents legacies.

 

[ovrszd]

Considering this remark is from 12/2004, I think spm22's lucid thought about the looming demographic cliff was very forward-thinking as some 39% of boomers hope to retire into a small-town or rural setting. What wasn't considered was that the boomers will also leave behind the largest wealth transfer in human history. Case in point fully 1/3rd of the real estate on my lake is already sitting in trusts. So long as the trusts remain funded, the kids will be able to participate in their parents legacies.

Yep. I believe the general population growth will fill some of the vacuum us baby boomers will leave as we die off. So might not that much of a gap. Might even bring the purchase cost of these vacated estates down a bit. Will be interesting for you "young" guys to be a part of and hopefully cash in on whatever shift happens.

 

[MinnesotaEric]

Yep. I believe the general population growth will fill some of the vacuum us baby boomers will leave as we die off. So might not that much of a gap. Might even bring the purchase cost of these vacated estates down a bit. Will be interesting for you "young" guys to be a part of and hopefully cash in on whatever shift happens.

In a low interest potentially deflationary era, I am wary of the demographic slump from 2018 to 2032 as the boomers draw agains their retirement savings and downsize. My generation has heard about this concern since I was 18 years old when Rose Perot first campaigned highlighting the demographic problem on the horizon.

 

[sixdogs]

In a low interest potentially deflationary era, I am wary of the demographic slump from 2018 to 2032 as the boomers draw agains their retirement savings and downsize. My generation has heard about this concern since I was 18 years old when Rose Perot first campaigned highlighting the demographic problem on the horizon.

I've seen those numbers and not one addressed the cost of end days medical/housing care or what will happen to asset prices when two generations of stuff is liquidated in a declining asset value market. You need cash to buy a lot of it and most people don't have any. How does that play out?