Re: Will Ford build tractors again

Posted by kyhayman on November 26, 2003 at 15:06:11 from (64.12.96.236):

In Reply to: Will Ford build tractors again posted by Huw from West Wales on November 26, 2003 at 09:20:29:

I could not fathom Ford making the investment in tooling and engineering to get back in the tractor business. To get into impliments also would cost another fortune. With the move toward multinational corporations and outsourcing as well as the declining number of customers (farmers) just dont see it. I once read once that it cost between 75 and 150 million dollars to bring a completely new engine design from conception to application, even if a whole tractor line could be engineered for that from scratch they would have to corner the market to recoup the investment in any reasonable length of time. Even the 'new' designs use a lot of off the shelf or improved design parts. Ford sold everything when they got out. From an investment standpoint they would be much better off to buy na exisitng brand and equioment line and put their name on it. Cant see this happening either, would any of the major companies would cost in the billions of dollars. Then they would need a dealer and support network. Just not enough money in it. Cat tried to break in a few years ago (and they focused on the high profit end of the market) and that experiemtn didnt last long. And they had everything already on the shelf except the 'accesory stuff' like 3 point hitches. Cat stock has almost doubled in price since they sold their Challenger name and line to AGCO (they kept the profitable part (making the platform and power unit). It would be the one of the best things to happen to farmers if Ford would but it would be one of the worst business decisions Ford could make.

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