Tractor News New Holland going out of business???

[jaymar421]

Locally and across the country (My family just drove out to CA and back) I've noticed that many NH dealers are teamed up with other brand name tractors (Kubota, Massey, etc). On each lot there are very few NH tractors, but quite a few of the other brands. I'm nervous because my new tractor needs to go in for more warranty work. If NH does fold, will my tractor still be covered under its original warranty and who will do the work? Does this seem like a downward trend for NH? It doesn't look too promising to me...

 

[slowzuki]

NH isn't going to fold. Case-New Holland are one of the largest ag companies in the world. The merging dealers is more a statement about economic times. Everywhere there are small dealers closing and others getting bigger to make it. JD is closing dealers all over too.

 

[Farmwithjunk]

Fiat has been shopping CNH around, looking for a buyer, for some time, albeit a low keyed approach. At one point, it looked very much like AGCO would pick them up. AGCO was doing quite well at the time and didn't see the need to assume a tremendous amount of debt. That turned out to be a wise move in light of the economic downturn of recent years. CNH is still a profitable brand, which is actually a great time to sell, while there is a marketable "worth". Fiat wanted to convert CNH to cash to further their auto/truck industry position. That said, no way NH is folding up their tent and closing.

Deere has taken a LOT of flack for closing "Marginal" dealers and consolidating several into more "regional" dealers, or chains of outlets under the control of one dealer. Deere has a tendency to make management decisions way ahead of the rest of the industry. That's why Deere has survived and everyone else has been sold, merged, traded, or closed. Now that we're down to 3 major players in the full line ag industry, those 3 are all having their hand forced...Put service, technology, parts, and inventory under one roof and cut numbers of old school dealers, OR, suffer the effects....No matter how you arrange the deck chairs, the Titanic will still sink. The only way to make it work is to dodge the iceberg. CNH and AGCO are following suit and cutting dealers within their brand that compete directly against each other. That allows the survivors to remain competitive, carry (and keep BUSY) a trained service staff, and to keep enough inventory in one spot to justify stocking adequately.

"Smaller" short line brands/Newer brands without 100+ years of product to support don't have nearly as long of a list of concerns. Brands like Kubota, Mahindra, ect, don't have 60 or 70 years of combines to support, nor do they have hay balers, planters, ect........Their inventory (and associated in store technology) isn't as vast and demanding. In that regard, they can still function like "the old days" for a few more years.

Look for the big box "Superstore" concept to become more common as time goes by, in regards to AG equipment/outdoor power equipment. It's just hitting the "big boys" first. That stratagy might not always be popular, but like it or not, it's the way of the future.

 

[DAY]

Interesting comment, "Mr. Junk".
I wonder how the off brands- Manhindra, etc, will fare in this re-arrangement of the deck chairs on the Titanic.

The Big Box concept is already a reality; a local "tractor" dealer also sells jet skis, ATVs, and snow mobiles- along with the full line of clothing, etc that goes with them. Kind of like going to Lowes/Home depot for a 2x4 and some nails, and having to walk past the line of mowers and snow blowers at the door.

Since many of the smaller tractors are all built by the same manufacturers, will there be more of the 'get big or get out' in the future?

 

[JoeinTX]

NH going out of biz? No.

You may be seeing some consolidation of dealers in your part of the world and it's a natural thing. Having both "Case" and "New Holland" dealers in the same town or area can cause the company to compete against itself for the same dollar.

I can see a point where the individual brands are collided together and the dealer chain streamlined, though. Why, also, continue to produce the same product in two different colors through two different dealer chains? The day of the purple FIAT is coming

 

[5030]

I agree, the 'mom and pop' business ethic concerning ag equipment sales is yesterday's mullet. Multi line dealers are/will be the norm. It's survival of the fittest and the end user (customer) will be the one to suffer because concentrating on one brand or line makes service and in shop work on that brand not only more efficient but more thorough.

I ignore the 'Fiat' name in NH. With me, Fiat is synonomus with junk, but then, none of my power units are blue. If it's not red and yellow, it's not in the barn.

 

[rdbigfarmboy]

Out of business no but slowly changing into one line and more market aware. Except neither sell a less than 30 hp tractor anymore. Why not?
The bigger models are made by other companies and sold by CNH. Why not go ahead and sell one color even if it is Fiat color, except for the models made by someone else. What about combines and stuff. The Case combine is nothing like the Fiat.
Some dealers dont have a chance (dead local area economy)and probably need to stay with used or shortline equipment.

 

[Nightrain1]

Interesting comment, "Mr. Junk".
I wonder how the off brands- Manhindra, etc,

Off brand, thought Mahindra was the largest tractor manufacture in the world?

 

[bigbull338]

NH is not going out of business.what your seeing is them closing their low end non producing dealers.wich happened in our area as they closed our local dealer.it took 3 or 4 months for NH to cut a deal for another dealer to open it back up.

 

[Farmwithjunk]

Off brand, thought Mahindra was the largest tractor manufacture in the world?

Compare bottom lines/corporate totals....Mahindra is nowhere near in the same league as Deere Inc, CNH, or AGCO no matter how you juggle the numbers for sales propaganda's sake. Deere, CNH, AGCO aren't one trick ponies.....Deere for instance has AG line, Consumer Products, Forestry, Turf (ie golf course), Construction/industrial.....Mahindra counts ONLY tractors in the same size range as what they produce, and doesn't include models built/sold by other brands that are smaller or larger, or industrial models. Count EVERY tractor sold by a specific brand, and I've heard that CNH wins that round with Case construction, New Holland construction, Case ag, New Holland Ag, ect....

But based strictly on who's total sales numbers are the highest, Deere wins in a landslide.

Last time I looked, Deere Inc and Caterpillar (if you want to count them in as an ag builder based on their interest in Challenger tractor line/Lexicon combines) are the only ag manufacturer in Dow Jones 30 industrials....(30 largest industrials NOT a utility or rail)