Combines latest on the Cat combines via article from DirectAg

A little history lesson with Claas and Agco. Remember the Claas that Massey used to sell that was painted Red. When Agco took over Massey bye bye Claas. Agco moves in Gleaner conventional painted red. Same will probably happen with Cat. Read some where a combine from Hesston painted yellow was going to Cat dealer meeting. THAT SURE WAS NOT A ClAAS!

I think the biggest problem which CAT has encountered in the AG business (thus far) is convincing some of thier existing INDUSTRIAl dealers to put a more concerted effort into aggressively marketing and supporting thier AG line, especially here in Canada. Since most everyone on this forum is spectulating towards the future of CAT and, in particular, the lexion Combine, I thought I'd add my "speculative say". CAT in itself is a strong brand name, and we live in a society where companies will (and do) pay huge dollars simply to carry someone else's strong brand name to enhance thier products image. CAT workboots and shoes are an excellent example of this; - I hardly think that CAT gives a dam about the clothing business, yet you see thier name on these products. I think that AGCO might be heading towards this same mindset with thier newly acquired cooperative working arrangement with CAT, and if you carefully read the press release, it states that SElECTED existing AGCO dealers will be marketing the tracked tractors. It would not surprise me in the least to see a full line of AG products being offered in the familiar CAT-yellow colours very soon, and the lexion combine fits well with the "yellow massey's", since the lexion does not offer a Rotary combine, but merely conventional threshing with rotary seperation. Existing AGCO dealers might service the regions which are currently NOT adequately serviced by CAT dealers, thereby giving CAT AG products an IMMEDIATE strong, existing dealer and parts network. Deere might have some very keen competition, afterall!

that makes sense, after hearing that the number of cat dealers at the agco meeting has doubled over the number of dealers that were in ag before the agco deal.

What are you sayingIJ That there is more Cat dealers interested in the ag business since the Agco-Challenger deal.

exactly that. It was like cat saying to their dealers, Either get with the program or else the local agco dealer will get your challenger sales. So quess what, more dealers at the meeting, signing up.The fact that some dealers did not want an ag division ,boggles my mine, The dealer I work for is gung ho on ag. I heard we even had neighboring cat dealers allow us to sell and service ag in their territory. I myself have crossed the line to work on combines for customers outside our area.

So which direction is the Cat ag dealerships headedIJ It seems like with the single Cat franchise per state and the consolidation of other dealer brands (N-H,Deere,C-IH) into mega-dealers or regional dealers, the creation of the Cat-Agco deal with more dealer outlets goes against what is happening in the industry. With less and bigger farmers to deal with,economics dictate that fewer dealers are needed.

Fewer dealersIJ What are you talking aboutIJ I already drive far enough for parts. Hopefully AGCO-Cat will give us all more dealers

the cat-agco deal does not really create more dealers. Think of it like this, if a farmer lives in an area where the cat dealer does not want to sell challengers or lexions, then he can buy a challenger from the agco dealer in the area. If he wants to buy an agco product, such as a fendt tractor, and his local agco dealer does not carry that line and the local cat dealer does, than he can buy it from the cat dealer. Parts for all cat and agco products should be readily available, ect. This is all speculation on my part becouse I don't really know about other dealers other than the one I work for. I think in my area nothing will really change. We will continue to sell and service challengers and lexions, I think we will sell maybe a wheel tractor from agco that the agco dealers in our area do not currently sell. They sell and service primarily gleaners and thats all. Does this answer your guestionIJ

In your scenario where "if a farmer lives in an area where the cat dealer does not want to sell challengers or lexions, then he can buy a challenger from the agco dealer in the area," this applies to the Challenger tractors only. lexion combines will not be marketed via Agco dealers.

Yea and I doubt that the Cat dealers will be selling Claas combines much longer. I dont know, but if this venture with agco works out. I wouldnt think they would be getting there combine from Claas when agco has a combine just as good as a Claas. I would think that Agco tractors would also have Cat engines in the near future. Just a thought, Illinois Gleaner