FarmTrac Troubles

[country69]

i had heard about 3 weeks ago a mccormick dealer had committed suicide..dont if this is the same one you heard about

 

[chh]

When it comes to the "relationship" between Farmtrac and Textron, I smell a dead rat somewhere....I just hope the truth comes out soon. Ther are some things that just don't add up. Textron didn't get to be a multi-billion dollar company by making stupid decisions...they knew what they were doing...I think it was an elaborate scheme to "dump" excess inventory before the boat sank and try to leave the dealers holding the bag.

You don't sound as optimistic as you did back in your posts on 2/7 and 2/11. It sounds as if Farmtrac is too encumbered for another company to take over and clean up now, so I guess Textron ends up with the assets? Is that the way you are seeing it? Any thoughts on what is going to be the final disposition of the inventory on the dealers lots?

 

[tommybr]

I guess all of us want to be optimistic....and things can still be worked out somehow. But, to be honest, I thought it would have happened by now. The more time that goes by, naturally the more nervous one becomes. At this point , sometimes it is difficult to distinguish between reality and rumor.

 

[32Ford]

I purchased a 300Dtc this past spring and have to say I am very pleased with the tractor. Not pleased with Farmtrac and how they can close their doors and walk away from its employees, dealers and customers. I do take comfort in knowing that Montana has the identical tractor and I have confidence the dealer I purchased my tractor will do his best to take care of my needs if needed.

In the end I suspect Escort/Farmtrac and Textron will not feel any financial impact from this at all, but the employees, dealers and customers will carry the burden!

Any tax advisers out there? It appears I will not be getting my final 5 money rebates. When I itemize my income tax returns can I somehow take this as a loss?

 

[NassauEquipment]

I have a big question is whether these are in fact Textron's tractors or if they are the dealer's tractors with Textron simply holding lein position.... This is one the lawyers will probably have to work out... If they are Textron's tractors, then they will have to liquidate all the inventory (either in bulk or piecemeal) and take the loss. If the dealers have ownership then it will be their loss.. MY hope would be that Textron and teh dealers working together and sharing the loss would result in a more efficient means of distribution of the surplus inventory and result in a lower total combined loss for all concerned.... but what do I know, I'm just a small town tractor dealer.

Since FarmTrac is no longer there for Textron to exercise the buyback agreement its a sticky situation. Read your Textron Dealer agreement. Talk to your attorney.

This is inventory that basically belongs to Textron under an inventory security agreement. That said, they don't want to be in the tractor business.

I will say again, get with your business attorney. I don't know if FarmTrac put this "program" in writing to the dealer about "never come due" or "never any interest"....but I would sure take that to the attorney as well. But, since Textron wasn't a party to the program (They don't lend money for free to ANYBODY).....they're stuck with tractors that there is no one to buy back (Farmtrac in this case). Buy back agreements are always a part of things between a Vendor and floorplan companies in case of dealer failure. When its the vendor that fails....its a different deal.

Also, I would think that with the liabilities Farmtrac has.... the best chance for a buyout will come when it hits the bankruptcy court so potential buyer won't be on the hook for them. From there its up to the new buyer whether to assume liability for outstanding and future warranty. Think of Bombardier buying Johnson-Evinrude.....or way back in 1980 when MTD bought International Harvester's Cub division. Assumption of any of this will because of the good heart of a buyer and desire to keep the name good.

Hopefully Textron won't lean on the dealers too hard....even though by the dealer agreements that were signed.....they certainly can. Really tough part is more often that not..there is a "personal guarantee" thats a part to the agreement.

Good Luck guys. My fingers are crossed for you.

 

[MessickFarmEqu]

I do take comfort in knowing that Montana has the identical tractor and I have confidence the dealer I purchased my tractor will do his best to take care of my needs if needed.

I hate to be a wet blanket, but Montana is the youngest company in the tractor business right now. If this industry starts to turn down then I'd question how long they can hang on.

 

[32Ford]

I hate to be a wet blanket, but Montana is the youngest company in the tractor business right now. If this industry starts to turn down then I'd question how long they can hang on.

I come to this forum for factual information and support on the Farmtrac debacle, not Monday morning quarterbacking.

I will never understand why some people apparently take pleasure in being a "Wet Blanket". Let's say Montana goes under, are you trying to tell me that I will not be able to get parts for my Farmtrac from any other place ?

I revently heard a description of a critic: "It is someone who after a battle is over comes out of hiding in the hills and shoots the wounded!"

 

[NewToy]

I hate to be a wet blanket, but Montana is the youngest company in the tractor business right now. If this industry starts to turn down then I'd question how long they can hang on.

"If" the business turns down ? That's a gimme, ALL business is turning down. This is not confined to the tractor business. I just hope Ford can hang on until my truck slides into obsolescence. $100+ oil is going to impact everything we do in ways we can't imagine. I filled up my 6 gallon diesel can the other day and it was over twenty bucks. This fuel thing is eating up any discretionary income that folks may have. The first thing that goes are the toys. Good thing you're not sitting on a boat or RV dealership, they are experiencing a very painful "downturn". It looks like it's going to keep heading south for awhile.
John

 

[tommybr]

I come to this forum for factual information and support on the Farmtrac debacle, not Monday morning quarterbacking.

I will never understand why some people apparently take pleasure in being a "Wet Blanket". Let's say Montana goes under, are you trying to tell me that I will not be able to get parts for my Farmtrac from any other place ?

I revently heard a description of a critic: "It is someone who after a battle is over comes out of hiding in the hills and shoots the wounded!"

McCormick also uses LG (LS Cable) tractors for its compact line.

 

[mbeeson]

Just to let you all know our dealership, just received Press Release from Montana Looking alot Better. Waiting to see what is going to actually happen.