That's the nature of a global economy, my friend. There are several possible outcomes - either that New England dealer learns to compete on something other than price, he grows in order to compete as a regional or national seller, he ceases selling and his business becomes service, repair, consulting, shortlines, etc., he learns to agressively cut costs, he diversifies, etc. I don't buy that costs are higher THEREFORE he can't compete. Costs are high in a lot of places and if cost were the only, or even the most important determinant, we'd all be driving Chinese tractors sold to us by WalMart.
Seen it in action, small to large. At the small end is the bicycle shop I once worked for, where the owner sold full-price, all the time. The first time I was in his shop, he stayed open until 3:00 AM for me and spent about 4 hours with me. He had every racer in the region for a customer. He sold on quality assembly (it matters a lot), measurably better quality service (he tracked metrics), and superior follow-up (every last sale received several follow-up calls over the first year).
At the large end, I currently work for the 3 largest brokerage in the country. Full-service, full commissions and fees. Almost every other competitor on the street is in the red or struggling. We just posted earnings 22% above the 1st quarter of last year. This company is *ferocious* about controlling costs.
Harley-Davidson learned the hard way. The company almost went under due to quality issues when owned by AMF. They were protected briefly (under the Reagan administration, I believe) with special tariffs after the management buy-out. They pulled their quality up and asked (!) to end the protection early and have competed successfully since, in spite of having about the most expensive mass production bikes on the market. And they do it in spite of high US manufacturing and assembly costs and in the face of high-quality Japanese and European imports.
Kubota should be figuring out how to help their dealers compete, not just support their inefficiencies, or, say ... Kioti is going to eat their lunch.
Bill