When 2 becomes 1

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By Dwain Duxson.

When 2 becomes 1 - The Machinery Dealership network throughout Australia is changing before our eyes. Many of the smaller Dealers are being bought out by the larger Dealers to form groups with economies of scale.

Whether that's a directive from the manufacturers only a few from the inside would know.

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For the CNH Industrial (Case and New Holland) group, it's likely going to mean that Blue and Red brands will combine. We are already seeing it play out. They have set it up so both brands use the same or very similar parts. Really it's just a matter of time. Some insiders say the transformation will happen within 5 years.

It will be a good thing for the 2 brands and some of the larger Dealerships, but it won't be all plain sailing. Wherever there are 2 x Dealerships in one town (1 x Red and 1 x Blue), it might mean that one of those Dealerships is virtually worth nothing. If that is right, it will have an effect on what would likely be a family-owned and run operation that would now be pretty much worthless or severely discounted at best. I might be wrong on this but it makes sense in one aspect and is wrong in the other. How do you see the Red and Blue coming together playing out? Reply to dwaind@farmtender.com.au

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