Posted by oldtanker on September 01, 2014 at 11:38:41 from (64.118.3.75):
In Reply to: J D Seller-CIH Parts posted by old bc on September 01, 2014 at 06:07:58:
Several times in the last 5 years or so Fiat has said that CIH/NH is for sale. The problem there is that it's huge. Add in the profit margins for CIH/NH haven't been great. So finding a buyer, who is willing to take on the whole works (that's how Fiat would sell it) with lower than industry average profits is impossible. A buyer would invest in something with a better return or wait for a "fire sale" price, pennies on the dollar. Raising parts pricing 41% at one shot will just about kill the profit end because a lot of red/blue guys are going to dump them and JD and AGCO will pick up that business. Fiat isn't going to let that happen. Now CIH/NH may allow Titan to raise prices on parts some to try to save them but with internet sales Titan would be shooting itself in the foot. They would loose both parts sales and new equipment sales. I do know the last time I checked prices on used equipment at Titan in Fergus Falls MN they have been way over average asking prices than that of private sellers and other dealers. Like a bidirectional where average asking was around 19K they wanted 33K. Bout the same hours and general condition. Or how about a Farmall 460 gasser, looked good for 6500 dollars? If Titan does fail CIH had better have a plan to reopen those stores. Lot of red around here and the closest non Titan dealer is small (14 used tractors in inventory) and 42 miles away.
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