Dealers react to Ford-New Holland deal.

Dealers React to Ford-New Holland Deal

MOST FARM machinery dealers see the combination of Ford and New Holland as helping their own businesses, or at least not having an adverse impact.

That's how the voting came in on the I&T Special Reaction Survey that ran in the November issue asking reactions to Ford buying New Holland, which was announced in October.

Of the 218 dealers who answered, 105 said the Ford/New Holland deal will help their business, while 29 said it would hurt. Another 72 said it would have no impact, while 12 said they couldn't actually give a yes or no answer. A few responses came from persons other than dealers, but not enough to include in this report.

A look at the dealers' responses is in the accompanying table, which breaks them down into whether they handle either of the affected lines.

The New Holland feeling

While many dealers made comments both for and against the merger, there was a strong tone of concern that New Holland's management style would be lost as a result of the buyout.

"Ford should let New Holland management take over Ford Tractor instead of vice versa,' wrote a Ford-New Holland dealer.

Another dealer, who also handles both, wrote: "NH gives dealers better terms, more interest-free floor plan, non-recourse financing, better warranty program.'

But a Deere dealer felt good about the merger because, "I feel Ford will not give away equipment in company stores as NH has been doing.'

And a Ford-NH dealer commented: "NH has a very bad marketing plan; company stores, rebates to farmers. Ford gives rebates to dealers to cover trade-ins, etc. Ford is an excellent line of tractors, with backing and marketing. This will help our industry.'

Dealers speak out:

"Ford will ruin a good NH operation.'

Ford/NH/Hesston dealer

"Deal will hurt my business if Ford Motor Credit gets involved with retail financing.'

Ford/NH/Kubota dealer

"It will hurt unless Ford changes the philosophy currently existing in NH company stores which predominate this area. It's important to note that neither company had to do this to get healthy.'

Ford/NH/Kubota dealer

"Ford quotas can and will be imposed! Result--small dealer out. Since I've seen what Ford has done to auto dealers in my area, I'm thinking of going to Deere.'

NH dealer

"It will be three to four years before we know what Ford wants. . . . I feel it hinges entirely on how hard Ford pushes the NH combine. Will Ford force NH combines with the contract?'

A-C/Gehl dealer

"If they paint the baler blue, it's all over for NH.'

Case-IH/NH/Steiger dealer

"NH personnel know and understand farming and dealers much better . . . let NH market the equipment and tractors. Ford Credit Co. no good!!'

Ford/NH/Steiger/Versatile dealer

"If Ford elects to strengthen the NH company stores, the independent dealer will suffer. This is the only negative aspect we see.'

Unidentified

"Will help because our customers now think Ford will stay in business; hurt because we have an NH company store 25 miles away that will become a Ford Tractor dealership.'

Ford dealer

"The Ford name doesn't carry the clout that NH does. Regarding industry effect: Depends on how they merchandise it. If they paint blue and push the Ford name, they'll lose market share.'

Case-IH dealer

"Not sure. We dislike Ford Motor Credit so much that if they choose them over NH Credit Dept., we may be forced to quit both.'

NH/Versatile/Steiger/White dealer

"In five years it will be JD and Ford vs. two Japanese lines. The rest will go out due to lack of funds for retail contracts and leases. Ford Motor Credit is a key to what Ford Tractor is doing.'

AC/Kubota/NH dealer

"Will help if Ford Credit is kept out! It will if Ford follows the marketing expertise of NH.'

Unidentified

"Makes Ford a viable single franchise without needing other supporting lines.'

NH/Deutz dealer

"If NH/Ford merger results in a consolidation of many dealers across the USA, it should be viewed in a positive way, since there must ultimately be fewer dealers in the USA.'

Deere dealer

"It won't result in fewer dealers, which is only thing to help.'

Case-IH dealer

"Ford is a much better businessman.'

Deere/Gehl dealer

"Will hurt until surplus equipment is given away. Long term no change.'

Deere dealer

Table: HOW WILL FORD/NH DEAL AFFECT BUSINESS?