sugarloafguy
Silver Member
- Joined
- Jun 16, 2006
- Messages
- 117
- Location
- New Gloucester, Me
- Tractor
- New Holland TC29DA/14LA Loader and Tc24DA/12LA Loader
This is a follow up to a discussion that began in the Farmtrac thread.
AGCO has had an identity problem that actually began in 1985 and continues to this day. One of the fundamental problems with then Allis Chalmers was they were in about every other business but the tractor business which is what they were best known for in the first place. Pumps, electric components, hydro electric, oil field, construction and tractors. I am sure I missed a couple. When the agri business was sold due to their financial difficulties, the trademark black and orange "A" along with the Allis Chalmers name, persian orange paint code and their whole identity should have gone with it and whatever was left been re-named. Although AGCO is part of that (Gleaner Combine) what is left is a loss of corporate identity. Deutz Allis, KHD, AGCO Allis, now AGCO along with about 20 other brand names equals confusion in the marketplace. The Allis Chamers name and trademark "A" on a small energy services company in Texas is truly a shame.
AGCO has never totally understood they had two famous brands-Allis and Ferguson. Forget White, Fendt,Valtra and Challenger. Massey is their cash cow, Allis should have been next. Instead they decided to dabble in three virtually unknown brands, two of which were European in the first place and, like Deutz, had little name recognition and supply chain operations here. The last I knew, AGCO also did distribution and parts for Same-Deutz-Fahr in the US. I'm not sure Cat was famous for anything Agri with the exception of a track-style tractor in the mid-80's. White was on its way out as well, not unlike the heavy truck division of the same name. Instead of "being Allis" AGCO chose to be everything but. At the same time, their purchase of Massey from Varity was a smart move, a global leader and should have been used to re-build Allis instead of financing "start up" and unknown brand strategies. It is important to note that the AGCO tractor brand was only sold in North America and, memory serves me, the last tractor off the line in West Allis in 1985 went to Dubai. I am not saying that those four AGCO brands are bad but I see this as a marketing mistake when Massey sells more tractors worldwide than any other brand and your heritage is really Allis Chalmers.
In a 1984 interview, Archie Mccardell of International Harvester said the most difficult decision of his career was to sell the Farmall name, along with its trademark and related agricultural business to JI Case. Case tractors became International Harvester and Harvester became Navistar. Today, both live on in a very successful divesture that was a win-win for both the tractor and heavy truck business. International trucks are the undisputed leader in their industry and the merger of Case and Harvester created a broadline equipment maker with a brand identity going back to Cyrus Mccormick. Two different divisions of one famous Windy City manufacturer that are still recognizable and wildly successful.
As Jerry said in another post, maybe AGCO will finally allocate the resources to Massey that should have gone there all along. Don't bet on it. I think AGCO will continue this mix-and-match brand strategy that, while profitable, will continue to generate confusion in the marketplace and further erode its rich heritage. I would love to see newbie Mahindra's US sales figures for 2007 campared to the North American AGCO brand. My gut feeling is there are execs at AGCO that would have a reason to be ashamed. In the end, it appears that AGCO is ready to bury its persian orange past as it seeks to cultivate a global marketing strategy of lesser known brands that Massey Ferguson will continue to finance.
AGCO has had an identity problem that actually began in 1985 and continues to this day. One of the fundamental problems with then Allis Chalmers was they were in about every other business but the tractor business which is what they were best known for in the first place. Pumps, electric components, hydro electric, oil field, construction and tractors. I am sure I missed a couple. When the agri business was sold due to their financial difficulties, the trademark black and orange "A" along with the Allis Chalmers name, persian orange paint code and their whole identity should have gone with it and whatever was left been re-named. Although AGCO is part of that (Gleaner Combine) what is left is a loss of corporate identity. Deutz Allis, KHD, AGCO Allis, now AGCO along with about 20 other brand names equals confusion in the marketplace. The Allis Chamers name and trademark "A" on a small energy services company in Texas is truly a shame.
AGCO has never totally understood they had two famous brands-Allis and Ferguson. Forget White, Fendt,Valtra and Challenger. Massey is their cash cow, Allis should have been next. Instead they decided to dabble in three virtually unknown brands, two of which were European in the first place and, like Deutz, had little name recognition and supply chain operations here. The last I knew, AGCO also did distribution and parts for Same-Deutz-Fahr in the US. I'm not sure Cat was famous for anything Agri with the exception of a track-style tractor in the mid-80's. White was on its way out as well, not unlike the heavy truck division of the same name. Instead of "being Allis" AGCO chose to be everything but. At the same time, their purchase of Massey from Varity was a smart move, a global leader and should have been used to re-build Allis instead of financing "start up" and unknown brand strategies. It is important to note that the AGCO tractor brand was only sold in North America and, memory serves me, the last tractor off the line in West Allis in 1985 went to Dubai. I am not saying that those four AGCO brands are bad but I see this as a marketing mistake when Massey sells more tractors worldwide than any other brand and your heritage is really Allis Chalmers.
In a 1984 interview, Archie Mccardell of International Harvester said the most difficult decision of his career was to sell the Farmall name, along with its trademark and related agricultural business to JI Case. Case tractors became International Harvester and Harvester became Navistar. Today, both live on in a very successful divesture that was a win-win for both the tractor and heavy truck business. International trucks are the undisputed leader in their industry and the merger of Case and Harvester created a broadline equipment maker with a brand identity going back to Cyrus Mccormick. Two different divisions of one famous Windy City manufacturer that are still recognizable and wildly successful.
As Jerry said in another post, maybe AGCO will finally allocate the resources to Massey that should have gone there all along. Don't bet on it. I think AGCO will continue this mix-and-match brand strategy that, while profitable, will continue to generate confusion in the marketplace and further erode its rich heritage. I would love to see newbie Mahindra's US sales figures for 2007 campared to the North American AGCO brand. My gut feeling is there are execs at AGCO that would have a reason to be ashamed. In the end, it appears that AGCO is ready to bury its persian orange past as it seeks to cultivate a global marketing strategy of lesser known brands that Massey Ferguson will continue to finance.
