FarmTrac Troubles

[MessickFarmEqu]

Not to be a wet blanket, but we all saw this comming and know that this will not be the last of the minor tractor companies to go under. At this point, the tractor business is not even starting to feel the cruch of the slowing economey. Most major companies where up for 2007 as whole. If we do slip into a recession you'll see more of this happening.

 

[Farmwithjunk]

Not to be a wet blanket, but we all saw this comming and know that this will not be the last of the minor tractor companies to go under. At this point, the tractor business is not even starting to feel the cruch of the slowing economey. Most major companies where up for 2007 as whole. If we do slip into a recession you'll see more of this happening.

It's not inconeivable that even one or two of the "majors" could run onto the rocks also . Before the farm crunch of the 1980's, no one would have bet International Harvester would have met the fate they did. It has almost nothing to do with product quality. This is about corporate management skills in hard times.

 

[chh]

It's not inconeivable that even one or two of the "majors" could run onto the rocks also . Before the farm crunch of the 1980's, no one would have bet International Harvester would have met the fate they did. It has almost nothing to do with product quality. This is about corporate management skills in hard times.

The thing the majors have going for them though is that they are riding high on grain farmer sales. According to the farm news I get they have had very high sales last and into this year in big tractors, combines, and equipment fueled by higher grain prices.
Of course throw in a little bad management, falling commodity prices(if the bottom falls out of the grain market) and fuel prices pushing the ag sector and they could be in trouble too.

 

[Builder]

It's not inconeivable that even one or two of the "majors" could run onto the rocks also . Before the farm crunch of the 1980's, no one would have bet International Harvester would have met the fate they did. It has almost nothing to do with product quality. This is about corporate management skills in hard times.

I don't see it happening with US companies. With the weak dollar, exports to other countries are stronger than ever.

 

[Ned Farlinger]

It's not inconeivable that even one or two of the "majors" could run onto the rocks also . Before the farm crunch of the 1980's, no one would have bet International Harvester would have met the fate they did. It has almost nothing to do with product quality. This is about corporate management skills in hard times.

It won't happen to Green

 

[ToadHill]

Hay Ned, it happened to green already "Oliver".

 

[a blurr]

Green..... I am a former "Green" technitian and they build just as much junk if not more than any other company. They are reallly good at hiding it because if they are good at anything it is marketing! As for "Green" they are as much foreign as any other company. Tractors form India, Balers from Germany, oh and yes they do buy equipment and slap their name on it. As for the tractor market every company is constantly looking over their shoulder and checking where they step to see if the rug has been pulled from under them. Farmtracs issues in my opinion are a failure of checks and balances of management. Or maybe too many "checks" and no management. Anyway as for equipment every company builds quality equipment and they all buy and sell to one another to try and make money. Money after all is the bottom line and Farmtracs bottom line just isn't working. As for the consumer if you like the equipment you use and it performs as needed why should the brand or color matter. As for parts for Farmtrac compact tractor parts can all be purchased through Montana if needed. The Engine parts for the 270 can be purchased through Kioti. The "Ford" look alikes......... we will have to wait a little longer and see who picks up the slack on those parts. Some are the same as the old Ford tractors but most parts are not interchangable.

 

[a blurr]

Hay Ned, it happened to green already "Oliver".

Hey Toadhill. I see you own a Kioti? How do ya like it?

 

[sseelhoff]

I don't see it happening with US companies. With the weak dollar, exports to other countries are stronger than ever.

Sincerely,

Lee Iacoca

 

[a blurr]

Sincerely,

Lee Iacoca

Thats pretty good!! Ha Ha

 

[ToadHill]

A Blurr; I like it; has almost 700 hours on it in 2.5 years and it's going strong.

 

[California]

Does anybody know the story on Escort of India?

It appears this present mess is the collapse of the US importer. But was the importer a closely held division of Escort, or just the creation of some businessmen who sourced from Escort?

I've seriously thought about investing in Mahindra, Tata, and maybe some other first tier Indian companies. Where does Escort fit in that picture?

 

[a blurr]

California,
The Distributor(Farmtrac) is not owned by the MFG (escort). From my understanding Farmtrac is owned by a financial holdings company called S&S Holdings. Escorts of india is still biliding tractors and parts for all their tractors throughout the world.....except here in the U.S. I guess I should say there is not a network for them here in the U.S. until Farmtrac or some other company emerges and wants to play ball.
As for Mahindra they are supose to have money but then again so was FARMTRAC. I believe the ownership of Mahindra is set up similar to what Farmtrac is but I can not say for certain. There is a distributor of their tractors here in the states and they use the same name as the ones in the rest of the word but the ownership here is not a sole branch of Mahindra.
That is how it was explaind to me a couple of years ago.

 

[bluechip]

This taken from an Oct 05 Same Deutz Fahr press release concering their (at the time) arrangement with Farmtrac NA:
About ESCORTS Ltd
Escorts Limited, a USD 500 million conglomerate, is among India's foremost professionally managed groups with business interests in areas of agri-machinery, construction & material handling equipment, automotive & railway ancillaries, information technology and financial services.
Farmtrac North America, LLC is a Tarboro, NC based company which was acquired by Escorts Limited through its US subsidiary Escorts Agri Machinery Inc. Starting in 1999, Escorts has progressively acquired the majority equity holding in the company and now owns 75% of the equity of the company. Farmtrac markets its products in 32 states in US through a growing network of 300 dealers.

 

[a blurr]

I had seen that article too but it was dated 2005. Since then the information I have received is that S&S holdings is the controling party of Farmtrac the distributor. But who knows that could have changed yet again since that was relayed to me in late 2006.

 

[DavesTractor]

California, you would do well to invest in Mahindra. They are doing great!

Does anybody know the story on Escort of India?

It appears this present mess is the collapse of the US importer. But was the importer a closely held division of Escort, or just the creation of some businessmen who sourced from Escort?

I've seriously thought about investing in Mahindra, Tata, and maybe some other first tier Indian companies. Where does Escort fit in that picture?

 

[pete-mi]

I would agree with Dave. If the summer goes well I hope to buy some Mahindra stock this fall.

 

[marv32]

Hi. My name's marv32 and I am one of the "lucky" Farmtrac dealers. They terminated us a couple years ago for non-performance. Never mind that they would not ship us any product. We would order thru the t/m but when we called they would have no record. Orders always got lost. They picked up the wholegoods but we retained parts ordering and warranty priveliges. We are not stuck with any wholegoods; only parts. They might become more valuable every day.

 

[a blurr]

California, you would do well to invest in Mahindra. They are doing great!

Dave,
Things must be different where you are most of the info I have received on Mahindra is that yes they are financially sound for now but in the tractor market as whole they are not doing so well. I know they have been practically begging for dealers in the Mid-west I really hope they stay solid because we definately don't need anoth FT issue. I have been looking for another brand to carry but from reports I am not sure if Mahindra is the one I would pick.

 

[Builder]

For the first time in my life, I saw an ad on TV dedicated to mahindra compact tractors!