Posted by MarkB_MI on December 30, 2014 at 04:30:25 from (70.194.7.113):
In Reply to: AGCO rant posted by Bob Bancroft on December 29, 2014 at 16:05:19:
So who is to blame? Company, dealer or the market?
Presumably someone in AGCO corporate decided it was not profitable to maintain a business relationship with a marginal franchisee. Of course the corporate bean counters may not see the connection between being able to purchase parts locally and new tractor sales at a dealer ninety miles away.
Back in the late seventies and early eighties, IH closed a lot of dealers across the country. In 1985 International Harvester farm equipment was sold to Tenneco and merged with Case. Would the collapse of IH have happened if they hadn't gutted their dealer network? Or was the market simply too crowded for IH to have survived, regardless? I think IH management made the all-too-common mistake of sacrificing the company's long-term profitability in favor of short-term gains. That's what shareholders want. And that is why China has been eating US corporations alive: the Chinese think in terms of decades, not quarters of fiscal years.
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