Takeuchi to Brand Terex Skid Steers

[Digdeep]

Originally Posted by stuvecorp

It must have been cheaper to rebrand than design and build their own?

I'm pretty critical of ASV(now Terex) but do think they have a good idea, just wish they would have a build quality like CNH or Cat.

I agree with what you're saying, but I don't think it really helps Takeuchi all that much. Terex's skid steers are marginal....poor visibility to quick attach, no high flow, no ride control, crappy Chinese tires, painfully slow cycle times on their vertical lift path machines. they do have some nice things I liked...pilots, sealed cabs, easy access to the engine bay and service points.

I think ASV's current CTLs are much better than their older machines. I'd love to trade my old RC50 for a new PT60, but just don't do enough work with it in the Summer to justify it.

[ksss]

I would guess TK looks at it like a way to offer a wheeled machine with little investment. Unlike building their own and suffering the same fate as Komatsu, they can change the paint on the Terex machine, spin up a parts line for them and they are in the wheeled skid steer business. They do something similar with the TK wheel loaders. They are rebadged Atlas loaders I believe. They can be in that market, sell whatever comes their way for little overhead.

As to why the Terex machine, I suspect that Terex is giving them a great deal which means a better earning potential. The Terex ASV really does not compete head on with TK's CTL so your not helping a major competetor like they would be with a full line OEM. Who knows maybe TK will help them with some of the engineering on the Series 2 Terex wheeled skid steer.

Overall the whole thing really surprises me.

[Digdeep]

Originally Posted by ksss

I would guess TK looks at it like a way to offer a wheeled machine with little investment. Unlike building their own and suffering the same fate as Komatsu, they can change the paint on the Terex machine, spin up a parts line for them and they are in the wheeled skid steer business. They do something similar with the TK wheel loaders. They are rebadged Atlas loaders I believe. They can be in that market, sell whatever comes their way for little overhead.

As to why the Terex machine, I suspect that Terex is giving them a great deal which means a better earning potential. The Terex ASV really does not compete head on with TK's CTL so your not helping a major competetor like they would be with a full line OEM. Who knows maybe TK will help them with some of the engineering on the Series 2 Terex wheeled skid steer.

Overall the whole thing really surprises me.

A couple good points, but I have to think it is similar to the Takeuchi/
Gehl/Mustang arrangement.

Gehl and Mustang were at distinct disadvantages when it came to financing and machine and parts pricing against the Takeuchi dealers. Terex is going to definitely going to make a profit on the machines and parts in selling them to Takeuchi, and Takeuchi is also going to make some profit on the parts and machines, and the dealers yet again will want to make a profit on the parts and machines. In essence, you end up with a second layer of profit taking.

I know a sales manager at a local Mustang dealership that said this price difference in machines and parts really impacted his ability to sell their rebranded CTLs against not only Takeuchi, but less competitive against the other CTLs as well.

I also do think that in many cases the Terex CTLs do compete directly with Tak's CTLs. Not in all cases, but I know Terex dealers try to convince customers that their technology is superior to Takeuchi's and vice versa. At one point they were the only two going head to head in the market, and now they are still in the same arena, only it's much more crowded. Current market share data points out that you are probably correct that there are core segments that only want the suspension instead of rigid undercarriages. I think this is true because Takeuchi has suffered more loss of market share with all the other OEMs entering the market.

At the end of the day, I agree with you 100% when you said you are surprised. This makes at least two of us.