Business

Winnipeg Free Press - PRINT EDITION

'Peg's MacDon to partner with John Deere

By: Martin Cash

Posted: 01/31/2012 1:00 AM | Comments: 0 (including replies)

MACDON Industries has entered into a strategic relationship with John Deere to make self-propelled windrowers that will be branded in the distinctive John Deere green and sold through the equipment giant's dealer network.

Industry officials say it's an excellent arrangement for John Deere, MacDon and John Deere dealers and customers.

John Deere officials characterize it as a major strategic agreement because of the widespread demand for this type of equipment.

Barry Nelson, a spokesman for John Deere at its Kansas City office, said the company has similar arrangements with other manufacturers.

"Deere makes and manufactures our own equipment, but we can't do everything," Nelson said. "In order to make sure we have a complete line of equipment to cover all the different segments, we will have relationships with different suppliers."

The deal calls for MacDon to make select models of John Deere-branded self-propelled windrowers, including draper and auger headers, and pull-type auger mower conditioners.

MacDon specializes in the production of pull-type and self-propelled windrowers and specialty and pickup headers for combines.

It employs about 1,400 people, most of them in Winnipeg where it operates a sprawling, 600,000 square-foot manufacturing plant.

MacDon has its own extensive network of more than 700 dealers across Canada, the United States, Australia and Russia and distributes to more than 30 other countries around the world, including South Africa, China, Denmark, Italy, the United Kingdom, Brazil, Argentina, Uruguay, Paraguay, Kazakhstan and Ukraine.

John Schmeiser, executive vice-president of the Canada West Equipment Dealers Association in Calgary, said such a deal is further testimony to the excellent reputation MacDon has in the marketplace.

But he said some concerns are being raised by dealers about the deal.

MacDon already makes the same kind of equipment it will now also be making for John Deere and distributes it through its MacDon dealer network.

MacDon officials were unavailable for comment on Monday.

Schmeiser said he has been fielding calls from dealer groups around North America wondering how this will play out for the existing MacDon dealers.

"All I know is that MacDon dealers really like doing business with MacDon," Schmeiser said. "This is a very professional organization, and knowing the MacDon people, I am sure that they would have gauged the impact on existing MacDon dealers before they did this. That is their style. MacDon treats their dealers very well."

martin.cash@freepress.mb.ca

Republished from the Winnipeg Free Press print edition January 31, 2012 B3

(You must be logged in to post your reaction)

Your reaction?

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010; View the changes. New to commenting? Check out our Frequently Asked Questions.