IS THIS GOOD OR BAD FOR KIOTI

[MessickFarmEqu]

I think the market has reached its breaking point with all these different companies, some will fail and soon I believe.

Agreed. I often wonder how some of these companies stay in business selling only a few thousand units a year.

This will put some Kioti dealers out of business if customers start realizing that Bobcat is the same thing. Skid loaders are often sold with $300-400 profit margins. The money is then made on the attachments, kinda like razors... These new dealers will treat compacts the same way. Bobcat has a huge network that Kioti dealers will now have to compete with.

As for the rest of the market. I think its a toss up. Bobcat has had TLB's and some small tractors in the past that did not make it through the long haul. Their customer base is so construction based that I don't see them having a huge impact on the average acerage owner. Rumors of this have been flying around for along time now, its not too surprising that this happened.

 

[Oleozz]

In my opinion anything that will "cheapen" the Kioti name would not be good. I'm not sure how people are going to react to a Kioti made Bobcat tractor or if they would even care. In this area the Bobcat excavators don't have a very good reputation, not sure why, but I have talked to farm equipment dealers who don't sell Kioti but still speak highly of them. Just saw where ABC Groff, a farm equipment dealer in New Holland has taken on the Kioti line and they have been advertising agressively in the Lancaster Farming Magazine.

 

[MessickFarmEqu]

Just saw where ABC Groff, a farm equipment dealer in New Holland has taken on the Kioti line and they have been advertising agressively in the Lancaster Farming Magazine.

ABC groff is about a half hour from us. Their preferences seem sway like the wind.

 

[EquipmentJunkie]

I expect Bobcat tractors to look so different than Kioti's that most people won't know the difference and those who do know, won't care.

The average Bobcat customer will say, "Hey, did you see that Bobcat is now building tractors."
If you reply, "Yup, those tractors are built with Kioti engines and transmissions."
Their response will be, "Who?...Anyway, those tractors look pretty nice with the white paint and the red wheels. I drove one and think that it's perfect for doing some brush work at my cabin. It should be ready to pick up at my dealer next week."

This deal with Bobcat will help Kioti weather the storms in the North American marketplace. Messick is correct, this deal was long-rumored in the marketplace...exactly the same amount of time as Kubota's upcoming skid steer loader. We will see that rumor confirmed soon enough.

 

[Dougster]

Not sure what this means for Kioti/Bobcat but I'm pretty sure there is nervous talk around the watercooler at Kubota dealerships today.

Amen Brother Island! And not just at the Kubota dealerships. I'm betting Kubota management is none too pleased about this either. "Alternate orange" just got a little bigger and brighter! Properly handled, this could be a great opportunity for Kioti.

This has also got to mean Bobcats will drop the Kubota engines and go to Daedong engines. That alone will help make "Alternate Orange" a bigger thorn in the side of "Big Orange"!

Dougster

 

[JerryG]

Unless these Bobcat tractors are dramatically different from the Kioti models, I would think that the Kioti dealers would have a major problem with this happening. I know that if I was a Kioti dealer, I would be major concerned about it.

 

[IslandTractor]

I know that if I was a Kioti dealer, I would be major concerned about it.

I suspect they are anxious but some Kioti dealers may benefit while others lose. Certainly with the Bobcat connection Mr. Uneducated TractorBuyer may be more willing to explore beyond the Big Three. The flip side is that he may do so directly at the Bobcat dealership. I'd think that the smaller Kioti dealers have more to worry about as they don't have the marketing muscle of Bobcat nor do they offer nearly the support that the larger full service tractor dealers do. However, someone has already pointed out that Bobcat is a construction equipment company. I don't see Bobcat sales people doing a good job of talking the new tractor buyer through the 3PT hitch or MMM or a number of other Ag related features.

If the public knows that the Bobcat tractors are born of the same parents as the Kioti tractors they may well mosey down to the local Kioti dealer for a looksee before making a purchase decision. Kubota and JD dealers will inadvertently encourage this by pointing out, in an effort to disparage the new competitor, that Bobcat tractors are really made by Kioti. A solid and full service Kioti dealership will then have a chance to impress the new buyer just as much as a big three or Bobcat dealership so increasing foot traffic would likely be a benefit.

One more point. Once in use, those Bobcat tractors are going to be the dirtiest looking of all. Imagine how lovely dirt and grease will look on a white tractor. I'm jealous already.

 

[dgl24087]

I'm not overly confident that this will affect the typical Kioti dealer much at all. It looks to me that it will be somewhat similar to Cat entering the tractor market with Challenger. The majority of Bobcat dealers are construction based, as are Cat dealers, and I just don't see this crossing over that much. However, if Bobcat is made available to Kioti dealers, it could work well for them.

 

[MessickFarmEqu]

it will be somewhat similar to Cat entering the tractor market with Challenger. The majority of Bobcat dealers are construction based, as are Cat dealers, and I just don't see this crossing over that much.

Good point. Challanger sure did not last long in CATs hands.

 

[aesanders]

Why not keep the CUTS painted orange with the Kioti name (not change them at all) but sell them at al the bobcat deaers. Rename the Company Bobcat/Kioti. Seems like overnight Bobcat became a Korean company and overnight Daedong increased it's dealership substantially.

I think Bobcat translates a little better selling tractors than Cat does as well. If you walk onto a cat dealers lot to look at a little CUT you feel kind of silly with all the massive machines they have their. Not true with the Bobcat dealer who mostly caters to smaller constructon companies and farms anyway.