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The Orange Paint Truth

32K views 343 replies 53 participants last post by  redpainter  
#1 ·
What all of you do not see is the true cost of having the AGCO Tractor brand. Us as a dealer have to pay contract fees, marketing fees, service training fees, etc.......... What it amounts to on the AGCO side is the closing down of a paint booth, a decal printer and a marketing department, which in reality accounts for millions in expense.
These tractors are EXACTLY the same. Have been for a while. More so than a Chevy Silverado and a GMC Sierra. Would you swear off a Silveardo if you drove a Sierra and they quit making it?
This move will help in many ways. With everyone on the same page we can lower costs of equipment, improve marketing, offer beter promotions it terms of financing and develop dealers.
Does it hurt? YES. No one more than us. We have been loyal to the AC Tractor for 40 years. We still run a Light Super Stock AC D21 pull tractor. But if I can sell a $100,000, 150hp Massey for $95,000 and offer better parts avaliability and service because there is no more AGCO Tractor then I can live with that. Many of you probably can not. However, AGCO has many great products are they are improving. If you take a look at more than just the color you may like what you see.
 
#2 ·
I get the point. Agco has forced its dealers to like what they are doing What may I ask is a dealers alternative. Agco Massey Challenger may all be identical and may very well be quality equipment. However here is the situation Agco has put many loyal customers in who by the way stayed loyal because the thought orange would remain. Now even though dealers may have no choice guess what customers do and last I heard one rule in business is the customer is always right. Im sure many will switch even I after years with Deere tractors wanted to return to orange but thanks to Agco I wont have to decide. In light of all Agco has done Ireally have to wonder wether I sould continue with Gleaner due to the unpredictable decisions Agco makes . I certainly wish everyone all the best in the decisions they are going to have to make.
 
#4 ·
You say the customer is always right. Right about what. It is a color and decal. Nothing more, nothing less. I could understand if AGCO tractors had their own features, engine option, Transmission, Axle, Cab, buttons, footstep, seat, smell, etc....... but they do not. Agco in not forcing dealers to like the product they sell, they are just changing the name and color of one part of their product offering to cut costs and transfer resourses elsewhere. Which will benifit current and future customers. Many on here have said they dont like the way agco supports certain aspects of their business. Well this is a start.
 
#5 ·
So is this such a good idea when nobody wants to buy MF? That really seems to be the case here. The amount of guys staying doesn't look like it's going to be more than the amount of guys leaving, I really don't think that pays out in the end. And after this circus does anybody really think that they're going to sway any customers from Case or Deere? Doubt it, they wer laughing before and I'm sure they're laughing even harder now at Agco debauchery.
 
#6 ·
If a person does not want to buy a MF, they should not want to buy an Agco. Now or before this decision. Orange dealers will be red or yellow. nothing is changing in the product offering. I just have to ask why are they saying they are leaving other than a color and a decal?
 
#7 ·
I'm going to be the boring person here. If you are a dealer, work for a dealership, or any such thing. Why is there nothing about where you are located displayed and why didn't you tell us what and where your dealership is at? Until that happens I don't think there is any truth here. Why? Because if you were really a dealership you would want people to know who you are and where you are located at. None of that is here - so I think this is B.S.
 
#8 ·
It isn't going to benefit me any. We have never had a MF piece of equipment, we have never felt the need to have a piece of MF equipment, and everyone around makes fun of MF equipment. I doubt if my dealer will continue with Agco and their herky jerky management style. But, they handle some other lines that will fill the bill. I can't tell Agco to kiss off yet, because I need parts to keep my current fleet of orange and silver machinery running that I bought in good faith. I thought I found a company I could depend on, a company that wouldn't ignore it's proud heritage, and a company I could believe in. I guess not.
It must be a heck of a lot cheaper to make yellow tractors and Challenger decals? That dog won't hunt.
 
#10 ·
what i've been saying from the start its PAINT. why cant they still paint it orange. if they were smart they could combine their advertising and promote a AGCO tractor. While doing that they could offer different heritage colors. thats basically what they are doing with three brands. Massey can fly a kite for all i care. and if Agco wants to go with it then it will be a sad day. just hope they'll keep the heritage parts line.
 
#11 ·
Sometimes you think you have heard it all....then of all Richenhagen Koolaid drinkers you have a dealer at the trough! What part of this don't you understand? Yes they are the same tractor - we know all of this, the point is this is AGCO's heritage, the the market leader in AGCO's NA row crop segment! MF is a distant third, CAT dealers are dropping Challenger like the plague, and you still think this is the right decision? I would agree with you if the numbers and market surveys indicated otherwise, but that is not the case. Since us ignorant producers don't understand marketing costs, please explain the justification for the Challenger combine and hay tools. They sell in really great numbers don't they? What about the story line about the costs of EPA Tier 4 testing? That was a whopper from AGCO management. Turns out a bald face lie verified by 2 engineering sources who work with emissions laws. Maybe you like being lied to by Richenhagens clowns. All I can say is keep drinking the kool aid, as many of us now former AGCO customers won't be there to share it!

And for the record, color does matter, that is why Chevy and GMC offer a choice for their customers, along with all of the other free world auto companies. My choice is Orange/Silver, one gone and the other endangered!
 
#12 ·
I wouldn't but many would. It would also depend on the dealer. Of course this doesn't really matter in this case because GM made dealers improve facilities and locations and people training. They culled out the small underperforming dealers who wouldn't invest in facilities and training. AGCO apparantly have no requirements when it comes to facilities or training. I know brand loyalty is a hard concept for AGCo to grasp because they have never had any.
 
#13 ·
Maybe if AGCO offered superior parts and service they could charge 105,000 for that same tractor. Anyone ever think of that? This whol problem starts at the dealer level(or lack thereof). It is not about the product. It is not about price. You could offer Masseys around So IL for a 20% discount tomorrow and not sell anymore than you did today. You could go but John Deere's and paint them red and slap Massey on the side and be just as unsuccesful. Finally the terms parts availability, service and AGCO should never be used in the same sentence.
 
#14 ·
We also are a MF/AGCO dealer and have survived many changes. We have sold MM, Oliver, White, AC, DA, AA, and AGCO tractors as well as all their combines. We also handle Lexion combines and Claas forage harvesters. I have sold MF high HP tractors as well as AGCO. I hope we will retain our customer base as we will be here to take care of them. Customers have invested a lot of money and pride in their brands, and to some it’s just a tool. To the guy’s that wear the underwear of a brand this is a difficult situation as it is for me. How many times as dealers have we went out and outperformed brand X so badly we thought a slam dunk was headed our way to have them buy an inferior product because of color, brand. We, KIC, will get through this, but I absolutely do see where the frustration is coming from. My father outlasted all of the management of the companies listed above and we intend to do his legacy justice and be here long this is over.

Bruce
 
#15 ·
I totally agree with Brian. I think they should let all dealers have everything agco offers. Red, Yellow and Orange. Combine all marketing into one effort. one comercial, one advertisment, one brochure, marketing department and let the chips fall where they may. This is one option I would totally support.
 
#16 ·
Dear agcomfdealer it is a shame you can come on the Gleaner page and spew half truthes that agco is releasing. This is not about loosing a color of tractor or even a name of a tractor, but simple economics for the farmer and alot of loyal agco gleaner dealers. What if those dealers cant get the other contracts offered as you say can be done, trust me it cant! Talked to a dealer in nd no masseys have been sold there for many years, agco bailed out massey years ago, they had a bad reputation. I have been selling agco products since day one and spent two terms on national dealer panel, I know the workings of agco very well. We have been a Gleaner Dealer for 32 years. I am so proud of the loyal people on this thread that are as mad as me, and they have a d**n good reason to be mad. The management of agco does not deserve our loyalty, they dont have any for there dealers or our customers. Agco has forgotton how they got here. It wasn't from the lame brains that are running this company today. I hope someone working at Agco still has common sense and can talk some sense into those lame brains before they loose all of our customer base as well. For the record our dealership does more dollar volume in parts sales from Agco than almost all the massey dealers do in wholegoods. They have the contract and we dont and with no ability to get it. What a shame, maybe you should go back to the massey section where you belong and and quit gloating, stay the heck out of here. Again let me thank the loyal customers that read these threads, and letting me vent. Agco truly does not know what they are in for. Thank you all,
P.S. Give them the orange!!
 
#17 ·
Hey Bruce; glad to see you on here. There's been several post lately from guys saying they are dealers and turning out they were pulling someones chain. I know this crap with Agco is tuff for all you guys, I know it's been a problem for my local Agco dealer. I need to get out and see you before spring gets here.

This is one of our good Kansas Gleaner dealers!
 
#18 ·
Hey Bruce; glad to see you on here. There's been several post lately from guys saying they are dealers and turning out they were pulling someones chain. I know this crap with Agco is tuff for all you guys, I know it's been a problem for my local Agco dealer. I need to get out and see you before spring gets here.

This is one of our good Kansas Gleaner dealers!
[/quote]

Yes he is!!!
I've been to the store many times myself, and always enjoyed a good visit.
 
#19 ·
Part of the real problem in my opinion is it all boils down to trust. AGCO told the dealers about a year ago when they introduced the DTB series tractors that the AGCO brand was here to stay, LONG LIVE THE FAMILY FARM they said. Now they have decided to heck with the family farm and want to continue with the almightly Challenger. Many of us have gleaner combines and have been thinking of upgrading. Now we don't know whether to trust AGCO as they have us in doubt as they have proved there word is no good.
 
#20 ·
I wouldn't but many would. It would also depend on the dealer. Of course this doesn't really matter in this case because GM made dealers improve facilities and locations and people training. They culled out the small underperforming dealers who wouldn't invest in facilities and training. AGCO apparantly have no requirements when it comes to facilities or training. I know brand loyalty is a hard concept for AGCo to grasp because they have never had any.
Well, to be fair, there WAS a lot of brand loyalty from the orange crowd, but they have frittered it all away. Mostly because they can't comprehend brand loyalty.
 
#21 ·
I agree with painting them all orange. If it is only paint and decals the MF customers won't mind one bit. Look how much Agco is saving! They could leave off the MF stickers and just leave the corporation indentification decals. That way it would just say AGCO on it. You have heard of Agco, right? They are the corporation that OWNS MF. It seems like it is easy for everyone to forget just who owns who here.
 
#22 ·
Yes the customer is right. If the customer doesnt want to have any association with Massey why would he spend his moneyon it I hope every Agco dealer has great success with their new situation but I for one have no desire for Massey or Challenger. I have a deep connection to orange that would have made Agcos new tractor apossibility. Im sure they are fine tractors .
 
#23 ·
What makes no sense is the yellow paint. Challenger dealers are quitting the ag business and AGCO pisses away their market leader in HHP(orange) in North America. If it truly is a cost issue why has AGCO not shown us any figures on exactly what color sold x number of units this past year in just big row crop tractors. Challenger may appear better with tracks and articulated tractors, but give that to the AGCO dealers who know how to deal with us farmers and I might buy one. I won't bend over to pay for the so called kitty cat service. Like I said on another post the AGCO dealers appreciate my business and I'm not just a pis ant to them like I am to the cat dealer because I don't buy any construction equipment.
Look online at Challenger combines, why does AGCO finance have so many. It is because Cat dealers don't care or know how to service them!
 
#24 ·
It may just be paint. But who is going to service the non-painted combines? Red or Yellow? I have both in my area, and neither have sold or carried a combine in 10 years. Do you think any of their techs even know how a combine works? So, as for as I am concerened paint does matter, and Orange is top of the list. No Orange, no silver. Versatile should buy the Gleaner brand, since anywhere I have ever seen a Gleaner sign, Versatile was on the same sign post.
 
#25 ·
Along with many dealerships and soon to be factorys. Lots of layoffs coming in near future
I do agree they will save millions of dollars but there revenue will be less by millions more
I just hate it when the mf guys say that agco does not sell, what the heck are they running, an agco, mf is a division of agco.
What is the shame of being 3rd in tractor sales behind jd and case in the corn belt, no reason to cry, drop the line and throw in the towel and bring out the 5th tractor in sales just to say there is a market in the corn belt
 
#26 ·
I like this idea. Sell Gleaner to Versatile. Why didn't I think of that? In fact just convert all the AGCO dealers over to Versatile and give them Gleaner. Then they could take on Kinze planters and Landoll tillage. I just set someone up a pretty darn good business model for free. Though I got to give wafarmer the credit for getting it started.