No! The company was pretty well wrecked before AGCO came about. AGCO resulted when the Germans had had enough and decided to leave town. Management bought what was left of the the business from Deutz and formed AGCO (Allis Gleaner company). About that time labor went on strike the tractor market crashed they made some bad decisions in alternative energy and couldn't make the payments on the debt. In an unrelated move The Germans then sold out the Deutz tractor division to SAME in Italy. Hmmmm.... The Germans buy or "merge" into a large American corporation, loose money had over fist, sell the business for far less than they paid for it and the Italians end up owning it. Where else have I heard a story like that? My brother in law is an MBA type that does turn arounds, he gets into businesses that aren't sustainable (losing money, not growing or both) and forces them kicking and screaming to face reality and make changes that will cause the company to grow and make money. He talks about "economies of scale" in manufacturing. The bottom line is in large industrial manufacturing of durable goods a mature market will usually only have room for three large manufacturers. Globalization has further increased the stress on business, when the market for the product becomes global their will only usually be room for 5-6 major manufacturers, but market forces will usually move that down to 3-4 major players. The loss of some of our favorite tractor manufacturers is brought about by both market forces trimming the number of manufacturers to less than 5 significant participants, running in the back ground are changes in farm practices (farms getting bigger and more specialized) and maturity in tractor development and production. How many tractors from the 40's and 50's would run 10,000 hours without major service? Improvement in our current tractors has moved us away from small innovative companies that developed new or improved technologies that increased productivity, comfort, durability or efficiency. What new innovations will we see on tractors in the next 5 or 10 years that will have the effect that pneumatic tires, power take off, hydraulics, live power, power shift/step shift had on the tractor market?
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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