The lull in machinery sales is starting to focus the minds of manufacturers on their future strategy, with Fendt taking one of the most dramatic steps yet.
Billed as transforming its existing business model into a partner programme for certain product groups, the company is no longer going to sell either the T series of telehandlers or forage wagons.
While CNH may be advancing its full line programme, Fendt now appears to be retreating from what it once envisaged as essential components of its growth strategy.
Slow sales beckon changes
Vice-president and chairperson of the Fendt Management Board, Christoph Groblinghoff, noted that the current market situation is characterised by volatile and softening markets, requiring a more flexible approach to production capacities.
The slowdown in trade has also resulted in an increase in unit costs and so, to maintain the competitiveness of its range, certain product groups will be offered directly by Fendt’s partners in the future.
The telehandlers affected will be the T series machines produced by Sennebogen, a company more involved with specialist material handlers and cranes than farmyards and fields.
These machines, though no doubt excellent in design and manufacture, always appeared a little out of place in Fendt’s portfolio, certainly in Ireland where few could think of a use for them within agriculture.
Those that were sold will still be supported by the company in the way of spares and service, and any outstanding orders will be honoured.
It is understood that the machines will still be available through Fendt dealers in the original Sennebogen colours.
No forage wagons from Fendt
The situation with regards to the Tigo range of forage wagons is a little more drastic in that Fendt will stop supplying them from mid-2025 onwards. The company is, in effect, bowing out of the market altogether.
Despite this, Fendt is still legally required to continue supporting the machines for another 20 years and the company fully intends to meet this obligation.
The manufacturer has selected a new and preferred partner in the form of Strautmann, which is already available in Ireland through IAM of Kilkenny.
The manufacturer is based in Lower Saxony and while Fendt has indicated that the range may be purchased through its dealers, territorial conflicts could already exist, assuming that Fendt dealers would wish to handle a machine type that has plenty of competition and static growth prospects.
Yet Fendt remains keen to promote Strautmann, mentioning the latest model on its website, the Magnon 11, which lies at the top end of the company’s range.