FarmTrac Troubles

[chh]

I'm not a dealer but I'll tell you that Textron is the money in this puzzle. They floorplan the tractors to the dealers and finance the tractors when sold. IMO from what I understand of the situation there will be no deal with anybody without dealing with them and making them happy and they probably have more say in the situation than anybody in the comapny. In a bankrupcy(which may or may not happen) they would be the the major creditor and would come out with most if not all the assets from Farmtrac.

 

[cmuncy]

If I am not mistaken, since Textron is the flooring company, FarmTrac really doesn't have any inventory per say. So even if FT when under, I don't believe that Textron would be a creditor since they already own the dealer inventory

 

[firedog]

Did some quick research on Textron. A few companies they own are: Cessna, Ez-go, Jacobsen, Greenlee. Farmtrac was not named, but I also found this on Textron Financial's site.

Our Agriculture Equipment Finance team understands the unique needs of everyone in the equipment distribution chain. By providing manufacturers, dealers and end-users with the equipment financing they need, we help them improve performance and grow their businesses.

Wholesale Financing
We provide inventory financing via a revolving credit line that allows dealers, and distributors to access capital as they need it.

Goes right with what you said. It would seem they are Farmtrac's financial backer.

FarmTrac really doesn't have any inventory per say

Yes and No. Having a business on the side, we have a revolving line of credit at the bank for such things as inventory purchases, etc. The inventory is ours unless we fail to pay the bank, then it's theirs. (along with our butts)

 

[tommybr]

Textron is Farmtracs largest creditor......some say they hold the mortgage on the building and facilities.

 

[mbeeson]

I have been a member for a little while now, I usually just enjoy reading each of your post and have never replied. I am a dealer for Farmtrac and have been for 9 years our Customers have made us the number one dealership in Texas, and I don't take that lightly. We have made some great friendships thruout the years with our customers and appreciate each one of them. As a Farmtrac dealer we all are suprised at what has taken place. I cannot answer for Farmtrac nor will I try. But, I can only answer for us. Through out the past 9 years we have tried to give our customers the best product,service and warranty. At this time, we are caught in the ups and downs of the Farmtrac problems but as a dealer we are doing the best we can to continue our service, we cannot Promise anything but, we can try to do the best we can. Our Customers are what matters to us.

The Korean Tractors are the LG/LS series "270,320,3030,300,360,450,550,3145,3140
The Indian Tractors Escort are 35,45,60,70,80,535,545,555,665,675,

Many companies in the market at this time carry the same tractors
Montana 3040 is the same as a Farmtrac 300 I can go thru the list but it would be long and drawn out. Escort tractors match some of your old Fords.
Parts availibilty is really not going to be an issue. The issue is warranty. We have stopped all our sales of Farmtrac here till we have in Writing, of a buy out and who will warranty the new tractors. But, I personally feel confident that there will soon be a buyer. I do not have in black and white any one company at this time has made the deal. Nor am I trying to make statements to that fact. Textron has alot of money invested in this and I can tell you they especially have alot invested in us as a Famtrac dealer, as they do in many dealers. We are trying to stay as true to our commitment to our customers as we can. Dealers may not be able to take at this time expensive warranties or even small ones due to the fact, we have lost sales and they we will not be paid for warranties at this time. All that dealers can do, is do there best. For all my Farmtrac Friends and Dealers we here hope for the best and are awaiting the day that we can return to selling our tractors and serving our customers properly.

 

[California]

... since Textron is the flooring company, FarmTrac really doesn't have any inventory per say. So even if FT when under, I don't believe that Textron would be a creditor since they already own the dealer inventory

As I read the early posts, what Textron owns isn't the inventory but rather paper secured by physical assets. They have the legal status to force a liquidation, a fire sale of the physical assets, but all they will accept is cash. They don't want tractors.

And if I understood it right Textron is now demanding immediate payment to close out what had previously been financing over a long period of time. This is squeezing the dealers to pay Textron cash, while the dealers inventories of FT tractors is unsalable due to lack of factory warranty. I would think this might strain the larger dealers and be real hard on the smaller ones.

 

[NewToy]

mbeeson, well said. What else can you do under the circumstances? I liked your honest, hat in hand approach to the problem.
Is the FarmTrac parts dept all shut down as well? Have you had to order parts from Montana? I hope Montana and their dealers look out for us FarmTrac guys when we need them parts

John

 

[mbeeson]

Newtoy, to answer your question. Honestly we ordered parts thru Farmtrac NA thanks to all the great volunteers at Farmtrac up untill Feb 5, after that we started ordering from Long Agri Co. The set back to ordering thru them is the dealer must pay for the parts up front. Our business is family owned and operated, and immediatly we took stock of all our Farmtrac parts. How we are handling it is we will continue to do our customers warranties with what parts we have in stock, we still fill out are warranties even though at this time it is worthless.
We know there is a chance we may never get paid for them but that is chance we as a dealership have decided to take. If a customer has a warranty issue with something I do not have in stock, we are trying to at this time, wait untill we have an answer from the big guys. Hoping that is soon! For customers who are not in warranty or just would rather not wait and pay for it themselves, we order all LSandLG through Montana and On the Escort side we can either order through Long Agri Co or go Ford oem. On the Lg/LS there is little or no warranties, Thank goodness the Koreans do a great job at building there tractor. Now on the Escort side we feel we are more concerned. Also to let you know on the Farmtrac Implements tillers and Finish mowers Unifarm Machinery has all the parts available. I hope this helped.

 

[bluechip]

And if I understood it right Textron is now demanding immediate payment to close out what had previously been financing over a long period of time. This is squeezing the dealers to pay Textron cash, while the dealers inventories of of FT tractors is unsalable due to lack of factory warranty. .

No, so far Textron's terms remain the same. I chose to liquidate the tractor I put on ebay because it came due in full this month. Other tractors will come due in the future, as they were billed originally. I believe the interest for the free floor plan time was deducted at time of funding to Farmtrac.

The big problem is thatSome dealers are holding inventory that Farmtrac was paying interest on, that has stopped and now the dealers will have to pay. Also Farmtrac was soliciting orders from dealers with the promise that the tractors would never come due, they would rebill and update the invoices, this encouraged many dealers to "stock up" without fear of having to pay heafty interest charges if the tractors were not sold during the "free" floor time. Other dealers agreed to store tractors from dealers who have terminated, with the promise that they would not cost the dealer any interest or ever come due. But Farmtrac put them on these dealers floorplans. These guys (& gals) are really in a pickle now.

 

[firedog]

To mbeeson, bluechip & other dealers.

Thanks for posting. I know some of ya'll might be in a bind due the Farmtrac issue, it must be tough when this type of thing happens. My dealer has been very supportive as well as ya'll. As a farmtrac owner/customer I appreciate the insight, information & positive outlook ya'll have provided. Keep up the good work and thanks.

Godspeed.