IR sells off some compaction assets

Discussion in 'Heavy Equipment & Pavement' started by ksss, Feb 28, 2007.

  1. ksss

    ksss LawnSite Fanatic
    Posts: 7,129

    This is interesting. Having such a strong position in compaction, I am surprised that IR would sell it off. Volvo continues its purchase of smaller companies to round itself out to be a complete full line provider. I continue to wonder what IR has in mind for Bobcat? It appears obvious they are restructuring themselves.


    http://www.etrucker.com/apps/news/article.asp?id=58481
     
  2. Tigerotor77W

    Tigerotor77W LawnSite Bronze Member
    from Germany
    Posts: 1,891

    I was about to post the same topic -- what's particularly interesting to me is the following:

    [Bold emphasis added by author]

    Source: http://www.khl.com/news/article.asp?articleid=3853&magazineid=6
     
  3. ksss

    ksss LawnSite Fanatic
    Posts: 7,129

    I don't have numbers to support this statement, but I question whether Bobcat would be better off without IR. I don't think you can say that Bobcat has expanded its marketshare over the course of the IR tenure. It has appeared to me as though there has been a lack of commitment by IR to the Bobcat brand. I think this has caused a reduction in demand for the Bobcat product. Considering how commanding of a presence Bobcat had in Mini-excavators and skid steers to where they have slide to now, something has happened within the organization. I think the excavators have really taken a slide more so than the skid steers. Maybe there is a better parent company out there waiting to step in. I am sure that there is talk in many a board room about the fate of Bobcat after this IR sale became public knowledge.
     
  4. Tigerotor77W

    Tigerotor77W LawnSite Bronze Member
    from Germany
    Posts: 1,891

    I'm not sure, though, that IR would be willing to part with its Bobcat brand. It's been promoting it strongly (hence the rather large "IR" directly next to the "Bobcat" on the tailgate) since it trashed the Melroe idea. When the 2300 was launched, it was made quite clear around IR circles that Club Car and Bobcat really worked together to put out the product. In this sense, there wouldn't be much logic in parting from IR's flagship line/brand (arguably, though there are other very strong brands in its family). Bobcat is just too much of a name. In addition, market shares will slide regardless of who's at the wheel -- you can bet that Deere's foray into track loaders (i.e. 755C, 655C) has dented Cat's market share in that industry, and that Komatsu's entry into ADTs has reduced Volvo's ADT market share.

    That being said, however, it does appear somewhat that Bobcat is at a stagnation point and needs to be injected with more testosterone -- playing of one of their ads -- and a revamping of certain models. Customers are still buying them, though, and I think they're not suffering badly from it overall.
     
  5. ksss

    ksss LawnSite Fanatic
    Posts: 7,129

    I would have thought that IR's compaction line would have been to too good to let go, atleast from the outside looking in. It appears that IR is more diversified than I thought they were according to the article. What I find interesting is IR's marketing of compact equipment outside of Bobcat. I have been curious what the purpose is behind that?
     

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