René Koerhuis

19/12/2016

René Koerhuis

European ag machinery dealers in many countries are currently (but also continuously) experiencing quite some turmoil caused by tractor and machine manufacturers who are realigning their distribution channels. Recently John Deere Netherlands announced the takeover of a dealer in the centre of the country by another John Deere dealer in the North of the country. Since the bankruptcy of another Dutch John Deere dealer in June 2015, the number of dealers now has gone down to 6. Whereas before the end of 2010 and the elimination of long-time importer Louis Nagel, The Netherlands was served by 26 dealers. Annually about 2.500 to 3.000 new tractors are sold in The Netherlands.

The so-called ‘Dealer of Tomorrow’ strategy John Deere is executing at the moment, also affects other European countries. In Germany, the company reduced the number of authorised dealers from 60 to 38 and in the United Kingdom, the number was reduced from 40 to 25. Most striking is the situation in Denmark where John Deere will transfer its complete importer and dealerships to Semler Gruppen, the importer of Volkswagen Group.

Will the European distribution of tractors and machines move towards large multisite and multinational dealers like we have seen in North-America, Germany and the former Soviet Union? Like Cervus Equipment (John Deere), Rocky Mountain Equipment (Case IH, New Holland), Toromont Industries (Caterpillar), Titan Machinery (Case IH, New Holland), BayWa (Agco), Agravis (Agco, Claas) and EkoNiva (John Deere)? Only time will tell.