Economic Strategy Paper
AGCO Corporation is a German based company established in 1990 with the purchase of Deutz Allis Corporation. Prior to the official purchase in 1990, ACGO had purchased parts of the agriculture equipment business five years ago from Deutz Allis Corporation. Since the purchase, AGCO have become one of the innovative corporations in manufacturing, farming, and machinery equipment through market growth, strategic acquisition and the cutting edge agriculture solutions. Some of the acquisition included the purchase of Hesston Corporation, a leader in manufacturing hay tools in 1991, the purchase of White-New idea business of Planters and purchase North American distribution Rights to Massey Ferguson products and fifty percents of a joint venture established for AgriCredit Acceptance Corporation. This acquisition expanded the AGCO North American Network by over 1,000 dealers in 1993. In 1994 Massey Ferguson world holdings were purchased along with McConnell tractors which uttered the tractor manufacturing business to enhance the development of the AGCOSTAR tractor line.
In addition, AGCO continue to purchase other company assets, Tye Company, the makers of agricultural implements and tillage equipments was acquired in 1995. The following year 1966, it acquired the lochpe - Maxion agricultural equipment company in Brazil, one of the market leaders in tractors with the Massey Ferguson brand. Deutz Argentina S.A, Western Combine Corporation, and Portage Manufacturing Inc. in Canada were also acquired the same year to expand the Massey Ferguson combine business. Although during the 1990’s AGCO Corporation advance well ahead into the future but the 90’s ended with a down turn because of the economic problems in Asia and Russia which decreased the amount of production of grain. This drastically affected companies such as AGCO because the reduced crop prices force the farmers... [continues]
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