TWO years ago at the Italian EIMA show New Holland top man Carlo Lambro spoke of plans to invest in the brand and boost the portfolio with implements. His message was the same at the 2015 editions of SIMA and Agritechnica, and a few days before the doors opened at this year’s EIMA New Holland parent company CNH Industrial announced it had acquired Kongskilde Agriculture, and a deal that includes the Kongskilde, Överum and JF brands and production activities in Poland and Sweden.
The new owner is not able to say too much ahead of approval from the authorities, and we still do not know how much was paid for Kongskilde, but New Holland wasted no time in bringing a selection of cultivators, ploughs, drills and tedders to the Bologna Fairgrounds. Speaking at a packed EIMA press conference, Mr Lambro’s message was a clear one. “There are growth opportunities for us and we want to get into the European tillage and seeding equipment market,” he said. “Our mission is to become a full liner and provide farmers with a complete range of products.” The acquisition not only gives New Holland a wide range of cultivators, ploughs and drills, but also mowers, rakes, trailed forage harvesters and even mixer wagons. The first step of a long journey, which could ultimately see the company develop into a one-stop shop, the next step could see sprayers added to the portfolio. “The market is moving, we are a cash-rich company, and now is the right time to be looking,” said Mr Lambro. “If there is an opportunity we will take it.”
Nothing is expected to change in the short term, and he added it is far too early to confirm if/when the Kongskilde name and colours will be swapped for New Holland tractor blue or harvest yellow. It is also too early to talk about the effect the acquisition will have at dealer level, but surely it can only be a matter of time before New Holland dealers selling another brand of grassland or arable machines will be forced to relinquish it in favour of the Kongskilde portfolio? Also, how much longer will competitor tractor dealers be allowed to sell Kongskilde kit? Mr Lambro said New Holland has no immediate plans to make any changes, but one word he did mention for the mid to long-term was ‘exclusivity’. Also, when questioned as to the possibility of Kongskilde grass and arable kit being available through Case IH, Mr Lambro said there were no short-term plans to do this, but commented ‘both companies belong to the same group’.
Finally, you can be sure that the Kongskilde acquisition has rattled the cages of the major tractors brands. It remains to be seen how they will react. In the meantime, both Kubota and new Chinese player Lovol Arbos continue to grow their product lines and we appear to be moving towards a handful of European full liners.
