The vision of Arbos
Are the Chinese really coming this time?
Since 2015, the tractor market has been enriched by a brand: Arbos. The Chinese Foton Lovol Heavy Industries is behind this. The Chinese are not lacking in ambition and the budget is no problem either. With strong plans for the future, it breaks into the European market. The country has good cards in its hands for that.
One of the great novelties at the Agritechnica in 2015 was the (re)introduction of Arbos† The Lovol Arbos Group showed 3 tractor series in one fell swoop, which it wants to sell in Europe and build in the long term. Before that, the company bought the Italian brand name Arbos, a former tractor manufacturer and best known for its combine harvesters. These were sporadically sold by Cebeco in the Netherlands. Arbos deals in patents, about 70.000 according to tradition. In this way, the Chinese have a lot of knowledge at once.
Professional appearance
In addition to tractors and combines, Lovol Arbos, the Sino-European branch of Foton Lovol, also immediately created its own vineyard, bicycle brand and merchandising line. This gives the brand a very professional look. This sets it apart from its Chinese competitors. If you dig deeper, you will quickly see through the beautiful story. A lot still needs to be done before Arbos can actually establish itself in the market.
100
thousand
100.000 tractors
Foton Lovol is one of the largest Chinese machine manufacturers, with an estimated turnover of 3,15 billion euros per year. That is impressive for a company that has only been around since 1998. It claims to build 100.000 tractors and 50.000 combines per year. This gives it a market share of 35 to 40 percent in its own country. Foton Lovol is not a state-owned company, but it is co-financed and controlled by the state. That explains the ambition and budget of many tens of millions of euros for their European adventure.
Lovol since 2004 in the Netherlands
Since 2004, De Heus Groep has been an importer of compact tractors built in China for Western Europe. In the class up to 60 hp it has been marketing it as Eurotrac for years. Since the end of 2015, it has also been importing larger models, under the Lovol name, in the original colors.
Co-owner Hugo de Heus says he has not yet been approached for the importership of Lovol, but does indicate that he is certainly interested. According to De Heus, Lovol also has the ambition to sell tractors and machines in the Benelux. De Heus: 'In 2007 she told us that she wanted to be one of the four largest tractor manufacturers worldwide by 2022. Then I laughed that off. Now 4 years later I think differently. The brand is growing really fast. The Italian branch is a separate company with its own (Italian) management, despite the same parent company. Compare it with Volkswagen and Porsche.'
De Heus has been importing Lovol tractors into Europe under the Chinese name since the end of 2015.
Matermacc and Goldoni
While established Western manufacturers are working on their full liner strategy, Arbos has developed it in a very short time. For this it bought tool manufacturer MaterMacc and compact specialist Goldoni, both Italian.
Foton Lovol breathed new life into bankrupt Goldoni. Production is resumed, but it is expected that the models will eventually be integrated into Arbos. For the Eima and Sima show, Matermacc produced several machines in the Arbos colours. Field sprayers, fertilizer spreaders, seed drills and cultivators. Even a drone in its own color scheme could not be missed.
combine in 2019
As said before, the Chinese are not lacking in ambition. In addition to tools, there is a combine on the drawing board. It should be ready for production in 2019. There are also plans for a 300-hp tractor and its own CVT transmission. The 5000 Series tractors are on the program for this year. 4 models between 100 and 130 hp, with a three-cylinder Kohler Stage IV engine. The 6000 series (140-200 hp) and 7000 series (220-260 hp) are expected to follow in 2018. This three-series, a team of 30 engineers, has been developing since 2011 from an R&D office in Bologna, where the Lovol Arbos Group is home to. They are currently being built in China. Front axles, (powershift) transmissions and cabins are all made in-house.
De Heus would rather see a Chinese than a European. 'The price is an important argument. You can keep them sharp by producing in China. If you bring production to Europe, as Kubota does, then it becomes difficult to compete.'
Timeline of Arbos:
- 1897: Bubba . machine factory founded
- 1926: First tractor produced
- 1952: Bubba owner Lodigiani buys bicycle factory Arbos
- 1964: White Motor Corporation buys Arbos Spa
- 1976: Arbos back in Italian hands
- 1994: Arbos bankrupt due to financial crisis
- 1998: Foton Lovol Heavy Industries founded
- 2011: Lovol opens R&D center in Bologna
- 2014: Foton Lovol buys Arbos. Introduction to follow in 2015
- 2015: Acquisition of MaterMacc
- 2016: Goldoni takeover
Market share
The brand does not aim to snatch market share from John Deere, CNH and Agco, but mainly at the lower end of the market, where Zetor, Kubota, Landini and McCormick operate. Easier said than done. Kubota tries it with a European tractor and that is not easy. A European farmer is critical and buys what he knows. Arbos has to win on price. In their own words, that is 10 to 15 percent below the competition. The 5000 series starts with an entry-level model for 46.000 euros. However, the Chinese compacts are also becoming more expensive and more difficult to compete with. For the time being, the Arbos tractors will remain in China. Partly to make money quickly.
It is certain that Arbos will buy market share. It is also true that a lot of budget is available for this. The market and the customer cannot be guided. Competitors also bite on this. In the long run, it can only establish itself with good technology at an affordable price. Perhaps Arbos will then have a chance of success. However, many Chinese euros are still needed for this.
The 5000 series consists of four models between 100 and 130 hp. The entry-level model costs 46.000 euros. It will go into production in China this year.
Niels van der Boom
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