• 25-FEB-2013

Case IH keeps on growing in Europe



Market growth in all important European markets / Stable demand expected / Significant increase in sales as target / Fireworks of innovations announced for tractors in 2013

According to Matthew Foster, Case IH Vice President and responsible for the European branch of the tractor and harvesting technology manufacturer, Case IH was able to complete a successful year 2012. In almost all European regions, continuous growth could be observed. “As we continue to implement our Strategic Development Plan, we clearly expect further growth. Hence we will also expand our focal points in the Harvesting Business and Advanced Farming Systems, as well as concentrate on our After Sales Service and Professional Dealer Network.” Foster said.

In addition, growth markets in Eastern Europe including Romania, and Bulgaria have shown remarkable development. In 2012 Case IH started a sales cooperation in these countries with Titan Machinery which has now been extended to include Serbia, due to the development we have seen in these markets.

European farmers continue to invest

The positive annual result was driven by the strong demand for new technology from the agricultural sector in the biggest European markets, above all in France, Germany and also the UK. “Essentially, solid incomes of farmers have initiated and enabled these investments. Orders of Case IH machinery were also higher in almost all Central- and Eastern European markets compared to previous years. Markets for agricultural machinery were shrinking only in Southern Europe, in particular Italy and Spain, in spite of a small growth the previous year; this was largely characterised by poor harvesting conditions and economic recession in these countries. Despite to these conditions Case IH managed to achieve a continuous gain in market share.” explained Matthew Foster.

Stable demand expected

Against this background, Foster’s estimate with regard to sales is also positive for next year. “In the light of continuously positive expectations for the major export markets in Eastern Europe and the bottoming out of the market in Southern Europe, a stable demand for agricultural machinery and machinery production is possible.”

Matthew Foster put particular emphasis on the fact that such growth requires a network of truly knowledgeable and competent dealers. These developments are embedded in strong development programs which aim to support all Case IH dealers to develop ability to continuously and reliably provide the highest level of services to their customers.

Far beyond agriculture

“Municipal work, ground care and industry are three sectors with very specific requirements. At Case IH, we also have the answer for these sectors: nine solutions designed especially for these expert sectors. These solutions are based on our new tractor series, from the flexible Quantum V/N/F Series to our flagships Puma and Magnum.

These Case IH tractors in the experts’ range are tailored to the respective requirements, and can be fitted with a variety of implements and tires to match the demands of every application. All these models share the Case IH tradition of safety, operator comfort and technological advantages.” highlights Matthew Foster.

Spread the red – Case IH in demand world-wide

On the global level, Case IH was equally able to complete a highly successful year, largely based on the stable demand for Case IH technologies in almost all important agricultural regions world-wide. “Here, the results of our initiatives, launched two years ago and intensified in 2012, become visible.” reported Andreas Klauser, President of Case IH.

As part of this initiative, the introduction of Efficient Power Technology continued successfully in Europe and North America and numerous new tractor and harvesting machinery series were introduced globally. Among the many benefits of Efficient Power Technology is the increased fuel savings over previous models.

Citing the launch of the enlarged Farmall and Maxxum series as examples, “On a global scale, the introduction of various new products as for example the new narrow track 4WD Steiger Rowtrac, or the Magnum CVX were important steps.” explained Klauser.

“The new Efficient Power Axial-Flow combines were introduced in Australia, China, Russia and Ukraine, and the equally new Module Express cotton pickers stimulated considerable turnover developments in Southern America.” said Andreas Klauser with regard to some of the most important market developments. Equally important were the introduction of expanded services to support customers' broader needs.
Additional positive developments in China and India

Klauser highlighted further, “In China we are investing in a new manufacturing plant and a R&D center in Harbin, in the Heilongjiang Province in the Northeast, with an initial investment of over USD 90 million.”

“In the new 400,000 m2 factory, high-horsepower tractors, combine harvesters and other machinery featuring advanced technology will be produced. With this investment, Case IH expands its manufacturing base in China. Case IH also operates a factory in Shanghai where low- and medium-horsepower tractors are produced. “In India, we are leading the sugarcane industry mechanisation trend, increasing both our market knowledge and our productivity. With a market share well above 95%, Case IH continues on the path of worldwide leadership and success. And we have just launched the new A4000 series to answer specific requests and provide tailor-made products for local needs.” Andreas Klauser said.

“Within Fiat Industrial the agricultural brands achieved a net sales increase of 10 percent in 2012, amounting to a total of 15.7 billion USD.” highlighted Andreas Klauser. “These sales increases equal the average growth of markets for agricultural machinery in the different regions of the world, and also form the ambitious basis for next year’s targets.” concluded Klauser.

Scoring in Europe with innovative harvesting technology

Paul Harrison, Harvesting Manager Europe, pointed out that – in particular regard to our Axial-Flow combines – Case IH had above all listened to the requirements of the European markets: Reliability, Performance and Productivity – those 3 arguments are key for the customers. More powerful engines, lower fuel consumption, larger grain tanks, wider headers, higher performance, front tracks and with particular focus being placed on the management of crop residue, would have to be seen as decisive elements of change for our markets said Harrison. Additionally: “It is of utmost importance for Europe that our Advanced Farming Systems (AFS) with new innovative ‘Telematics’ technologies and it’s service support, continue to provide customers with the opportunity to monitor and adapt machine settings during operation as well as identify problems online and virtually from the farm office.” said Harrison.

Case IH markedly extents all power ranges

Beyond the strong growth of Case IH in the segment of high-horsepower tractors, Matthew Foster underlined the importance of also supplying small and medium-sized farms with innovative and reliable technology.

“In the context of our European growth strategy, we intensively extended our product-range of high-performance utility tractors for smaller and mixed farms last year, and here too, the world-class engines of FPT are one of our much strengths. We will present more highlights this year. The tractor series with continuously variable transmission technology including the Magnum CVX and the brand new Maxxum CVX, introduced at the SIMA, mark just the beginning of our fireworks of innovations, which we will use in 2013 to set further best-in-class standards,” Matthew Foster concluded.

Paris/St. Valentin, 25.02.2013