01.09.2010

JLG withdraws from Ag market

JLG is withdrawing its JLG branded telehandlers from the agricultural market as part of a new agreement with Same Deutz-Fahr

The move is part of a new 10 year global Supply Agreement with Italian based Same Deutz-Fahr, a leading manufacturer of tractors and agricultural machinery.

JLG currently manufacturers five telehandler models which are sold as the Deutz-Fahr Agrovector range with capacities from 2,900kgs to 4,000kgs and lift heights from six to nine metres.
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Deutz-Fahr Agrovector telehandler

It has also worked hard in Europe to establish a dealer network for similar products under the JLG brand. It signed the original agreement with Deutz-Fahr in April 2004 as part of an OEM deal for its European built telehandlers.

The company says that decision to withdraw the JLG brand from the Agricultural sector was not one that was taken lightly due to the considerable investment it has put into developing the market.

It now believes that the greatest opportunity for growth in the sector remains with the recognised and established brands and distribution networks. This applies to Deutz-Fahr for agriculture along with Caterpillar, while the construction and rental market will be covered by the JLG and CAT brands. The new agreement comes into force on October 1st 2010.
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The original JLG/Deutz-Fahr telehandlers in production at JLG's Maasmechelen plant in Belgium

Jonathan Dawson, director of sales and customer Support for JLG Industries European Telehandlers said: “Over the last five years SD-F has had considerable success in developing acceptance and market for the Deutz-Fahr Agrovector range of Telehandlers. Simultaneously, JLG has invested time and effort into the development of a dealer network and brand recognition in the Agricultural sector in certain regions of the world. Upon mutual reflection, we have decided that focusing on the world-renown Deutz-Fahr brand and having access to the global Deutz-Fahr dealer network will provide JLG with the best opportunity to market in the Agricultural sector.”

“Under the new agreement, customers will see a more cooperative involvement of local JLG product specialists working directly with Deutz-Fahr subsidiaries, dealers and distributors in the promotion, sales and after sales support of the Agrovector range.”

Vertikal Comment

This move makes total sense, Success in the agricultural market depends almost entirely on distribution, with most farmers buying the brand that their local dealer stocks. With Merlo and Manitou already in well before them and JCB having other farm products to offer, it was always going to be a struggle for JLG.

Pooling all of its effort with Same Deutz-Fahr will undoubtedly achieve a better result while saving marketing and development costs and building a stronger partnership.

Caterpillar also sells into the agricultural market, particularly for big farms, so between the two brands the company ought to win a decent slice of the market which tends to cycle differently to that of construction.