[AT] Oliver's decline was Nice Tractor Day

[deanvp at att.net]

James,

I really don't know. I haven't researched that. But there is a possibility that it might have diverted financial resources that could have been better used in the Agricultural market. 

Dean VP
Snohomish, WA 98290

-----Original Message-----
From: AT <at-bounces at lists.antique-tractor.com> On Behalf Of James Peck
Sent: Tuesday, November 12, 2019 9:15 AM
To: Antique Tractor Email Discussion Group <at at lists.antique-tractor.com>
Subject: [AT] Oliver's decline was Nice Tractor Day

Did the acquisition of Cletrac help or hurt?

Dean VP AT List Member <deanvp at att.net>; IMHO, Oliver could have owned the tractor market given they had to financial resources to make the marketing push. In my home county there was only one Oliver dealer whereas John Deere and I/H had a dealer in every town over 2,000 population.  The Oliver's in the field were clustered around that one dealer.  Dealer support  was probably more important to the farmers than the actual tractor.  Oliver was a leader in many innovations that JD and I/H followed with more marketing muscle. I know there was a kind of under the table relationship between JD and Oliver since Waterloo and Charles City were not that far apart geographically. I suspect there was quite a bit of industrial espionage that occurred in the local bars, homes and churches.  But…. Oliver was a technology leader. I don’t know how much the fact that the engines were not Oliver designed would have limited them.  But they just didn’t have the financial resources to compete after JD announced the New Generation tractors.  How that development was kept secret in the for several years is somewhat of a feat all by itself. The decision to develop the NG tractors was made in 1953. An expected 5 year development program. But it wasn’t quite ready in 1958 so there was a two year delay in the announcement of the NG tractors.  Had there not been the delay the 30 series two cylinder JD tractors would never have existed. Strangely JD became the largest producer of Agricultural tractors in the US in 1958 overcoming I/H largely due to the x60 series tractor fiasco.  I/h owned the tractor market and snatched defeat from the jaws of victory.  I/H management’s bad decisions overwhelmed a good product line. In the time period between 1950 and 1955 I/H owned on average roughly 31% of the tractor market. JD’s market share during that same period averaged only 14%.   It just proves that poor management can always overcome good products. . Here is a chart of the overall tractor market. The market fell apart after 1951. The void after WWII had been filled. 

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