TYM Acquisition of Kukje: Any Speculation On Branson Future

[bigcut]

Hi All,
Couldn't sleep last night, so did some late night reading about the dilemma of the poor buggers who bought Cabela tractors made by TYM. These poor souls thought they had a warranty with their purchase, but, after Bass Pro acquired Cabelas, BP decided they wanted no part of the tractor business.
As a result, NO warranty service on parts and repair service. TYM won't touch them with a 10 foot pole. BP has terminated the people that Cabela had hired to perform maintenance and warranty service.

Companies are acquired to fulfill a need within a business plan and a strategy. Got to thinking about Branson, after their parent got acquired by TYM. Any thoughts, knowledge, speculation on the future for Branson as TYM goes forward ???
John

 

[ericm979]

There's a lot of speculation on this site but not a lot of information. I don't think much gets out of the executive suites of TYM and Branson. The facts that Branson's still around as a brand, selling their own tractors and coming out with new models all indicate that TYM intends for them to stay around as a distinct brand.

The situation with Cabellas was not the same- they were not a tractor dealer or manufacturer, just a network of dealers big enough to put stickers and paint on the tractors.

Any manufacturer you buy a tractor from could get bought the next week and shut down the week after, or go bankrupt. It's not likely to happen with Kubota or Deere but there's no way to know for sure.

 

[bigcut]

Usually, when there is an acquisition of a company that competes with products that the parent makes, there is a consolidation of people, products and resources. This is all done to eliminate duplication and reduce cost, to pay down the debt. Oddly, this hasn't happened that I'm aware of. Unlike US companies, foreign owned businesses don't necessarily publish quarterly statements. They may put out an annual report of sorts. I posted the thread because there is so little info available.

I'll try and look TYM up and see what I can find.

 

[GirlWhoWantsTractor]

There's a lot of speculation on this site but not a lot of information. I don't think much gets out of the executive suites of TYM and Branson.

Agree with this FWIW. Companies will ALWAYS do what's best for their bottom line, and our perception of the "success" of a company may be wrong unless we can see their P&L sheets. The world's biggest brand may be losing money hands-over-fist for all we know.

The facts that Branson's still around as a brand, selling their own tractors and coming out with new models all indicate that TYM intends for them to stay around as a distinct brand.

The situation with Cabellas was not the same- they were not a tractor dealer or manufacturer, just a network of dealers big enough to put stickers and paint on the tractors.

Again FWIW, disagree with this. I would personally be a bit nervous if I had a Branson. Like if L Mitron or Dae Dong bought Mahindra (that would be a pretty large purchase) I would be nervous. Companies buy other companies for different reasons. One might be to acquire assets that they need to grow their business and it's cheaper than doing it from scratch (TYM's acquisition of Kukje may be in this category). Another reason might be to eliminate competition. TYM stated boldly that this was a "corporate goal" for them. Hard to say because as was stated "not much gets out of the executive suites." Very well put.

Any manufacturer you buy a tractor from could get bought the next week and shut down the week after, or go bankrupt. It's not likely to happen with Kubota or Deere but there's no way to know for sure.

Established companies/brands have advantages and disadvantages. It takes surprisingly little for a smaller more innovative company to start killing you with better products and new features that people want, at lower prices and with lower overhead.

 

[Cougsfan]

This subject comes up over and over. Nobody wants to buy a tractor unless there is an absolute guarantee that the brand will be around for the next 100 years. This security blanket isn't as important or even as valid as most people think. Get a book like "The Ultimate Guide to Tractors" and to a glimpse of the history of how the business has evolved. The tractor business is an incredibly inbred with constant mergers, acquisitions, takeovers, re-badging of tractors, farming out the construction of a model to a competitor to fill a perceived gap in their line-up and so-on. As mentioned, John Deere and Kabota are the only brands that have kept their identity, and even their linage isn't nearly as pure as they would like you to believe. They both brands have certain models that didn't sell well and are quite hard to get parts for.

The bottom line is that if a tractor is selling, they will keep selling it, weather it be TYM, Branson, or LS or whomever. And if the tractor sells in sufficient quantities parts will be available for longer than you will probably own the tractor. Branson falls into that category. If it is a model that doesn't sell, parts will be harder to find, regardless of which manufacturer badged it. I have owned various tractors of various brands for the last 40 years. The truth of it is, if my tractor needs worked on, I have never gone back to the original dealer. I either do it myself, or if I can't, I go to an independent tractor repair shop. I have generally found independent shops to be less costly and more competent that the dealers. Good shops are also very good at tracking down the weirdest parts for the weirdest tractors. My brother-in-law can still find parts for his 1950's Oliver.

I have no fears whatsoever about Branson coming under TYM's control. We don't even know what that means. If both models are selling well, why would they quit making either? It has doubled their dealer network. They have been maintaining both for a couple of years now. Heck, they could decide Branson is better that TYM and rebadge Bransons as TYM. Or maybe Mahindra will merge with Kioti and buy TYM, who knows?

The bottom line is that I would buy another Branson without reservation. It is a good tractor. I don't think I will have any trouble getting what I need to keep it running for years to come.

 

[ptsg]

So far the only thing that we can say that came up from this Branson and Tym group, was the small 19HP Branson tractor that I believe is made by TYM.

Here in Europe, Branson seems to have nothing to do with TYM. They are quite active in visiting the dealers to check out if they have what it takes to keep Branson owners happy. I follow some Facebook pages from dealers in Portugal and Spain and they quite often post pictures with Branson executives visiting dealers and importers.

IMHO and having checked Branson and TYM tractors side by side, I say that Branson builds an heavier and stronger tractor than TYM. Same applies for the fit and finish of the tractors. Not saying that TYM builds bad tractors, but I would say the TYM has more to learn with Branson than the other way around.

 

[PapeCAT]

I personally have no concerns about this TYM/Kukje merger in regards to the Branson lineup. There is a huge future for Branson tractors if managed properly. The product holds its own and is unique in many ways in the marketplace, price not withstanding.

 

[Cougsfan]

Another thought: My neighbor wanted the security blanket of buying a tractor from a company that has been around for nearly 200 years. So he paid the same amount for a 28 hp green tractor with no cab that I did for a 47 hp with cab and air conditioning. My tractor will work circles around his, and mine has steel bodywork instead of plastic. You pay a LOT for that security blanket. If I had bought a green tractor, I would have stayed awake at night fretting about what a lousy deal I got and how I could have done so much better.

 

[Stimw]

Would consider buying a piece of equipment made by Bobcat???
Well, I got a great deal on this "Bobcat" Trencher!
When I went to Bobcat for parts they said "Never heard of this trencher!" ???
After much research, I find out that the trencher was made by a company called "Berkene" (IIRC) who was out of business! No parts available.
Berkene made it, Bobcat put their name on it.
I got it cobbled back together and sold it.
My theory- NOTHING IS AS IT SEEMS!
I am happy with my 2005 Branson 3510.

 

[Hombre]

Would consider buying a piece of equipment made by Bobcat???
Well, I got a great deal on this "Bobcat" Trencher!
When I went to Bobcat for parts they said "Never heard of this trencher!" ???
After much research, I find out that the trencher was made by a company called "Berkene" (IIRC) who was out of business! No parts available.
Berkene made it, Bobcat put their name on it.
I got it cobbled back together and sold it.
My theory- NOTHING IS AS IT SEEMS!
I am happy with my 2005 Branson 3510.

Good friend of mine bought a Bobcat tractor a few years back, good looking tractor, he only uses it around his Vet business, cleaning the shavings from the horse runs then loading it and hauling it away. He mentioned to me the other day about having bought a "pig in a poke" as it's parts are unobtainium.....I recall when he first bought it I was pretty impressed by it's looks and features. I have no idea where he bought it as I've not only never seen a dealer anywhere around advertising them I had never even heard of them before he bought his. His is, I believe, the only one I've ever seen. I say I "believe" because a fella that lives a couple miles down the road may have one as well, never seen it up close but the color is white as is my friends.