FarmTrac Troubles

[taxpayer]

Hi Guys. I gotta say that Montana has been great to work with over the years. They have supported me as a dealer and done great. Our customers have been taken care of and we have been happy.

FT came to me several years ago when they wanted to expand out west and we declined because we were not sure of their commitment to the market. In hindsight we made the right decision.

Montana did not buy FT but only the assets. Why the annimosity towards them? They did not create the problem. Now, I have to admit that I followed this thread for a while but quit once all the goofy posts started so maybe I missed something but I for one thank Montana for supporting me as a Montana dealer.

My customers purchased a Montana and Montana should support their customers first and foremost. Anything after that is extra on their part but shold not be expected by anyone who is not a dealer.

I hate seeing anyone hurt and the FT debacle is a shame but lets put blame where it belongs and that is not on Montana.

Let me put it this way. If I as a dealer sold a Montana tractor and I have parts in inventory I know my customers need and a FT owner needs them then I will choose to supply my customers first as that is what they paid me for. I have to look out for my customers first, period. If I can help I will but again I owe my customers not someone elses.

How many FT dealers had an opportunity to be Montana dealers before all this and did not? I know of a few and now they are in a bind. I don't think Montana owes anyone a thing but their customers.

Again FT dealers I feel for you but lets be fair. Let the flames begin.

Maka

Maka, no one has suggested that Montana caused the Farmtrac demise,but the principal of ethics seems to escape you, you seem comfortable with a company who blindsided and slipped the blade in the back of a longtime business partner and who puts maximising profits above those considerations which could improve the industry for all concerned.what motivations or outside influences would cause a company to doublecross a manufacturer who, made it proffitable for them to remain in business for years?perhaps you have forgotten the chain of events outlined on this forum for a year now that brought Farmtrac to ruin and it's dealers to financial disaster.the chain of events that began when the owners/managers of Farmtrac shafted the very same manufacturer that Montana just slipped it to.
I think I would rather be where I'm at right now and at least know where I stand and how to overcome it, than to have to face the uncertainity of having a big financial commitment to some one who had no problem with harpooning a bigger fish than me.you may be the best dealer on the curcuit , but when the big boys finds it expediant to cut your water off, your well will run just as dry as the Farmtrac dealers and you won't be able to do a darn thing about it. dealers need to support dealers if any of us are to have a secure future in this industry.

Taxpayer

 

[Maka]

Hey guys, I pulled my post. I really don't want to get involved in an emotional issue here. FT dealers, I feel for you. I hope you get resolution and that the real culprits in all this are dealt with.

Maka

 

[taxpayer]

Hey guys, I pulled my post. I really don't want to get involved in an emotional issue here. FT dealers, I feel for you. I hope you get resolution and that the real culprits in all this are dealt with.

Maka

Maka, it was not my intention to cause discord here, but to make a point.for too many years the importance of dealers of all brands in the chain from the MFG to Dist to dealer and finally to the buying public,have not been considered in the equaztion.dealers are forced to sign onesided contracts in order to be a dealer and to shoulder unfair financial loads which rightfully should be the MFG or the distributer's.most will carry these loads out of consideration for their customers, because only at the dealer level are the customers engauged in a face to face relationship.everyone in the chain is expected to make a profit, that is necessary for survival. but no one at any level should be required to suffer because some one at a higher level mismanaged or misappropiated assets.there have been failures before,but never on this scale or had this much impact on this industry.if dealers would stick together,we have have a opportunity to bring about change in the way contracts are written and the risk we are required to carry in order to sell our chosen products. dealers need to be treated fairly, no more,no less.
if no action is taken and the farmtrac inventory on dealer's lots and in tarboro are allowed to finally be dumped on the market at pennies on the dollar, I assure you and every tractor dealership in the country will feel the impact at a time we are all facing a economic crunch.No animosity here friend, just concern.

Taxpayer

 

[smith mall]

What is rght and what is happening seems to be poles apart.The business atmosphere is based on everyone making profits.I have followed this blog and have looked at what happened to bring Farmtrac down without being partial.There was something of a self denial that the company is not doing well.Everyone from the banker to the company executive must have known things are bad,no-one wanted to actually say it.Will have someone benifited from this debacle,personally saying i dont see anyone(lawyers would have pounced on them).We take a lesson from what happened.Distributors of tractors are not going to survive(even manufacturers don"t).I see a very difficult time for agri distributors because the manufacturers are here and there is no place for two chains taking profits while the big ones like the KUbota"s/JD are selling directly.Escorts should have survived with there coming directly.It did not because the volumes they were selling was low.The times of Long and other distributors making money is over.Dealers have to be careful in what we represent

 

[Albitron]

I just made a "simple phone call".... Any and all FarmTrac dealers can buy parts from Montana. They did not say anything about having to become a Montana dealer to be able to order parts.

 

[MessickFarmEqu]

I see a very difficult time for agri distributors because the manufacturers are here and there is no place for two chains taking profits while the big ones like the KUbota"s/JD are selling directly.

What happened here is not so much that one company sells direct and one does not, its based on how they structured their financing. FarmTrac was delivering machines to dealers and offering huge dealer sales allowances. This enabled them to book false profits up front by putting a machine on a dealers lot. When a machine sold they had to pay back these incentives to the dealers (or LTZ customers). Kubota, CNH, Deere, etc can't do this as they floorplan their own equipment. These small equipment companies can't pull that off so they use companies like Textron to bankroll their operations. As I understand it, Textron is not nessesarly the bad guy beyond the fact that they should have been blowing the whistle when they saw FarmTrac pumping dealers and LTZ customers to cover their operating costs. The recomendations comming from the dealer associations is that we stick with companies who bankroll their own inventory so they can't pull stunts like this. Beyond that, I think everything will be more aware of some of the tatics that where employed here.

Feel free to correct me if I got any facts wrong.

 

[SESS]

AMEN Messick.

 

[taxpayer]

What happened here is not so much that one company sells direct and one does not, its based on how they structured their financing. FarmTrac was delivering machines to dealers and offering huge dealer sales allowances. This enabled them to book false profits up front by putting a machine on a dealers lot. When a machine sold they had to pay back these incentives to the dealers (or LTZ customers). Kubota, CNH, Deere, etc can't do this as they floorplan their own equipment. These small equipment companies can't pull that off so they use companies like Textron to bankroll their operations. As I understand it, Textron is not nessesarly the bad guy beyond the fact that they should have been blowing the whistle when they saw FarmTrac pumping dealers and LTZ customers to cover their operating costs. The recomendations comming from the dealer associations is that we stick with companies who bankroll their own inventory so they can't pull stunts like this. Beyond that, I think everything will be more aware of some of the tatics that where employed here.

Feel free to correct me if I got any facts wrong.

Right on the button Messick. I think we will all be more aware in the future.

 

[taxpayer]

What is rght and what is happening seems to be poles apart.The business atmosphere is based on everyone making profits.I have followed this blog and have looked at what happened to bring Farmtrac down without being partial.There was something of a self denial that the company is not doing well.Everyone from the banker to the company executive must have known things are bad,no-one wanted to actually say it.Will have someone benifited from this debacle,personally saying i dont see anyone(lawyers would have pounced on them).We take a lesson from what happened.Distributors of tractors are not going to survive(even manufacturers don"t).I see a very difficult time for agri distributors because the manufacturers are here and there is no place for two chains taking profits while the big ones like the KUbota"s/JD are selling directly.Escorts should have survived with there coming directly.It did not because the volumes they were selling was low.The times of Long and other distributors making money is over.Dealers have to be careful in what we represent

To believe that someone did not benifit from this is a complete denial of the facts and a lack of investigation.but rest easy and stay tuned, the truth will come out in due time.forgive and forgeting is not under my job title.

Taxpayer

 

[taxpayer]

I just made a "simple phone call".... Any and all FarmTrac dealers can buy parts from Montana. They did not say anything about having to become a Montana dealer to be able to order parts.

See Ted Wade quote in the daily southerner article dec 12 edition. to be fair,Farmtrac dealers can order parts from Montana, but only C.o.d. or credit card. kinda hard when you have had little or no income for a year.

Taxpayer