Break with Kverneland
The remarkable step of Deutz-Fahr
Same Deutz-Fahr (SDF) announced on Tuesday 4 April that it would no longer work with Kverneland from September 2017. The implement manufacturer still supplies Deutz-Fahr with haymaking implements. A remarkable step in the current world of full-liners.
Major tractor manufacturers are doing everything they can to act as full-liners. That means a comprehensive package of tools, in our own colors and via our own dealers. that's a North American philosophy. Many acquisitions have taken place in recent years. Think of Kubota, which Kverneland Group bought, or the more recent acquisition of Kongskilde by CNH Industrial (New Holland).
License since 1990
Tractor builder Deutz, then still under the flag of parent company KHD, bought a share in Fahr (manufacturer of haymaking machines and combine harvesters) in 1961. In 1977, that stake became 100 percent. The German brand was there early on. In 1990, the Vicon, PZ and Deutz-Fahr haymaking machines are merged into the new Greenland company. The owner is the industrial Thyssen Bornemisza group. Vicon, and later Kverneland, has been building machines for Deutz-Fahr for almost 30 years. Since 1998, the Norwegian Kverneland Group has owned Greenland. The license agreement with Deutz remained untouched. The company has already been going through life within the SDF Group for 3 years.
Since 2013, the Japanese Kubota has been the full owner of Kverneland Group. The first implements appear 2 years later in the striking orange-black livery. It therefore focuses primarily on Germany, France and the United Kingdom. You can now also buy Kubota tools in the Netherlands. An additional privateer on the coast off Deutz-Fahr.
History Deutz-Fahr and Kverneland
- 1961: KHD takes a 25 percent stake in Fahr.
- 1977: KHD acquires 100 percent Fahr shares.
- 1982: Change of name to Deutz-Fahr.
- 1988: DF sells machine factory in Gottmadingen to Greenland.
- 1990: Deutz-Fahr, Vicon, PZ and Rivierre Casalis merged in Greenland by owner Thyssen Bornemisza (now thyssenkrupp).
- 1998: Kverneland Group acquires Greenland and Vicon.
- 2008: Bucher Industries (Kuhn) takes over Vicon factory in Geldrop.
- 2009: Deutz-Fahr closes deal with Kuhn for the supply of mowers and balers.
- 2013: Kubota buys Kverneland Group.
- 2017: As of September 1, SDF will terminate the agreement with Kverneland.
Focus on tractors and combines
Despite Deutz-Fahr's history with haymaking machines, the focus is on tractors and combine harvesters. The company is also investing heavily in this. Dealers are also not obliged to sell the machines. On September 1, the agreement between Deutz and Kverneland will end. The company wants to focus on tractors and combines, the press release reports. That move can be interpreted as throwing in the towel. Kubota is investing heavily in the full-liner shelf and is certainly not the only one.
Sharpen the battle axe
From the end of this year, Kverneland will have to lose a piece of turnover, although the vast majority of machines are sold under its own flag. It paves the way for Kubota to perform better as a brand in Europe. This may eventually be at the expense of Kverneland.
Deutz-Fahr dealers are left empty-handed. They are familiar with the technique. Perhaps Kverneland can expand the sales network, where necessary, or at least have to fear less competition. With the recent acquisitions of Lely, by Agco, and Kongskilde (Stoll), by New Holland, it is time to sharpen the battle axe. In that light, the license termination is good news for both parties.
What will happen to Kuhn?
Deutz-Fahr is not completely without machines. It also buys mowers and balers from Kuhn in Geldrop. That contract will remain, but for how long? With the lack of tedders, rakes and loader wagons, the machine package does stand out very strangely from the rest. There is a good chance that this collaboration will also be terminated when the term ends, or that it will only continue on the presses.
The accumulated stock of machines will also be sold after 1 September. In addition, Deutz will continue to provide service and deal with warranties. It is required by law to do so. Kverneland continues, so the availability of spare parts will not lead to problems in the future.
Niels van der Boom
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