Official decision at the end of May
Agco focuses on Fendt in Europe
Agco will release the word this month about the new strategy for its Fendt and Challenger brands in Europe. This is confirmed by the vice president of the American company. Since the end of April, rumors have been circulating that Challenger will stop and Fendt will take over the production of tracked tractors and sprayers.
The English Farm Machinery Journal published An article at the end of April described Agco's decision to no longer carry the Challenger brand in Europe from 2018 onwards. Fendt takes over the production of tracked tractors and with it also the trailed and self-propelled field sprayers that Challenger builds in Grubbenvorst, Limburg. For the time being, the company has refrained from making a substantive response.
Changes are coming
Opposite the magazine Profi confirms Gary Rollinson, vice president of Agco, that changes are indeed coming. Rollinson is responsible for Challenger in Europe and the Middle East. An official announcement is expected in a few weeks. It is still too early to draw firm conclusions. “Changes in brand strategy will only affect the European and Middle Eastern markets,” says Rollinson. 'In the rest of the world, the strategy will not change.' In the United States, Fendt is marketed by Challenger. Smaller models come from Massey Ferguson.
Earlier this year, Agco came up with a proposal to integrate Challenger into the Fendt brand. However, no final decision has been taken yet. Agco is working on the details of the plans and how they should be implemented. According to Rollinson, new Fendt products will be introduced next year, but in which European regions that will be remains unknown for the time being. There will also be an option to continue to sell Challenger in certain European countries.
Grubbenhorst is involved in the decision
The whole story has a Dutch twist, because the old Ag Chem/Kurstjens factory in Grubbenvorst is also involved in the decision. Part of the new strategy is the move of self-propelled production to the Fendt factory in Hohenmölsen, Germany. In addition to the Fendt Katana forage harvester, the trailed Challenger sprayers are already being built there. A further loss of jobs is inevitable for Grubbenvorst. The location may remain open for the engineering, service and marketing department.
Since last year, pictures of a new Challenger crawler tractor have been circulating on the internet, which clearly has characteristics of the 500 hp Fendt tractor. With that, users finally get a CVT transmission at their disposal. In view of Fendt's full liner ambition, and the rock-solid ambition, it is a realistic option for Agco to choose to sell everything in green-red.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.