"European Scene": Fendt looks to be full line manufacturer. (New Machines, New Technology).

Fendt unveiled two new Vario tractor models at this year's Agritechnica, in addition to software changes to its Favorit 700 and 900 ranges. The firm also revealed a number of changes to the Farmer 300 C range, and work continues on the 828 EVO prototype.

However, Fendt's biggest news was not of a product nature, but the fact that AGCO has big plans for Massey Ferguson and Fendt. These plans were explained to more than 100 European journalists from 12 countries who gathered in Munich for a press conference in September.

AGCO chairman Robert R. Ratliff suggested that the plan is to increase the company's product portfolio to include balers, self-propelled forage harvesters, grass tedders and rakes within the next year. He said that the Dutch-based Ag-Chem (also part of AGCO) facility would play a key role in these plans.

"Ag-Chem has fit in very well to the AGCO portfolio," he said. "However, we believe that the firm can do more. It certainly has some spare manufacturing capacity.

"We are looking to use this capacity to assemble baler components from certain grass products made at our Hesston plant in Kansas. Initially, we will concentrate on a number of round and large square balers. These could be available in Fendt or MF brand names, or both."

This scenario has a familiar ring to it. It appears that AGCO is embarking on a similar route to that of Case New Holland, with common platform products being offered under two different brand names.

Ultimately, Ratliff suggested that the new harvesting division needs to come up with a whole range of grassland products. "We need to divert more attention to certain areas," he said. "The harvesting division needs to focus on a range of grass equipment, and this will include balers, tedders and rakes.

"In addition, we are looking to offer a self-propelled forage harvester. Negotiations are in progress. However, at this time I have nothing concrete to say about the matter," he added.

Fendt has been linked with the likes of Krone and DeutzFahr in connection with a self-propelled forager. All Ratliff prepared to add is that there is more than one forager out there. This could mean that Hesston might be involved in a self-propelled forage harvester project, and that the new machine will be produced in-house.

Finally, Fendt used the Munich press launch to unveil two brand new eight-straw walker combines. Called the 8300 (300hp) and 8350 (350hp), these are added to the existing models. They are produced at the AGCO combine plant at Randers, Denmark. Fendt has only offered combines since 1999.

According to managing director of sales for Fendt, Hermann Merschroth, the combines are moving well but a lot slower than expected. "The combine business is a lot more competitive than the tractor market," he said. "The launch phase was very difficult."

Merschroth confirmed that Fendt has sold 90 combines in France, and a further 43 in Germany. "Obviously, we are not satisfied with these figures," he continued. "This is something we are working on."

When it comes to combines, Ratliff is very clear about his intentions. "We need to introduce the Fendt combine to every country in Europe, including the UK, and do it as fast as possible," he said.

"In fact, we need everything -- combines, foragers, balers, rakes, and tedders. We shall be in a position to offer a full package before the end of next year."

Vario in the US

Fendt made 10,584 new tractors last year, and based on the negative market conditions caused by BSE and Foot and Mouth (F&M) disease, a drop of about 5 percent -- to 10,100 units -- is predicted by the end of 2001. In the US, Merschroth suggested that the Vario market is still in its infancy, although it is clear that there is a market for hi-tech tractors.

"In the North American market, Fendt is still in the market launch phase," he said. "We sold 200 Vario tractors to US customers during 2000. Our objective is to bring another 230 tractors onto the market by the end of this year."

He did not disclose exactly how many dealers are involved. However, he did say that Fendt is looking to win the support of capable dealers in the US and that the company is currently involved in talks with a number of potential candidates.

European tractor sales

The combined effects of BSE and F&M have put pressure on the West European tractor market. Fendt figures show that during the period 1995 to 1999, tractor sales averaged around 180,000 units a year. However, the firm experienced a drop of around 2.5 percent to 176,000 units in 2000. In the current year, Fendt expects a further decline of around 10 percent to 160,000 units.

According to Merschroth, Fendt made 10,584 new tractors in 2000. "Based on the negative market conditions, we expect a decline in sales of about 5 percent this year to 10,100 units," he said. "We are optimistic that there will be no animal diseases next year. We are looking to produce just over 10,000 tractors in 2002."

It is interesting to note that in 2000, Fendt sold 5,504 tractors in 34 different countries outside of Germany -- that amounts to 52 percent of total units sold. In 1999, exports accounted for only 48 percent. Although the firm only sold 106 (1 percent) more tractors last year than it did in 1999, net sales rose by 10 percent to 637 billion Euros.

"This is because customers are looking for higher horsepower tractors," Merschroth said.

While Fendt concentrates on Vario tractors from 92- to 286-hp, it has yet to break the 300hp bracket. Although rumors continue to circulate that the company is currently testing a 350hp tractor in northern Germany, the only official comment is that there is clearly a need for larger Vario tractors.

The underlying message to the press is that Fendt is very pleased with the way Vario tractors have been accepted, and that there was no need to make any major changes to any of the ranges.

If this is the case, then judging on the amount spent by the company on research and development (Euro 17 million) this year, it is clear that a lot of work is going on behind the scenes.

Fendt Tractor Sales in Europe

Country        Tractor     Tractor    Market        Market
                 Sales    Forecast     Share         Share
                  2000        2001  (%) 2000  (%) 2001 (*)

Austria            324           -       4.1             -
Belgium            227  Lower (**)       9.2             -
France            1675        1700       4.4             5
Holland            609       Lower         -             -
Italy              825         735         -             -
Scandinavia  224 (***)         250         -             -
Spain              300         400         -             -
Switzerland        284           -       8.1            10
UK                 113         180         -             -

Looking at these figures, it is clear that a few gaps still need to be
filled in. In addition, the entries do not include Slovenia, Croatia,
Bosnia Herzegovina, and Yugoslavia, where the first tractors were sold
last year.

(*)Prediction

(**)Fendt predicts a drop of 15-20%

(***)100 of these went to Denmark.