The manufacturer well known for its acquisitions of other manufacturers now wants to be known for its new technology. To prove it, AGCO recently rolled out enough new high-tech equipment to justify renting a hall in the St. Paul, MN, convention center to show it off to the media.
AGCO’s Senior Vice President Garry Ball spoke about the company’s growth strategy that switched from acquisitions to technology development in 2004. The switch occurred after AGCO purchased Valtra, a Finland tractor manufacturer. Ball says Valtra was the last major company AGCO could buy and still receive antitrust clearance from the U.S. Justice Department.
During its acquisitions phase, AGCO spent its financial resources on the consolidation of products, Ball says. Now the company is focused on technology. This year, AGCO will spend $240 million on product development compared to $100 million in 2004.
“Before 2004, it was rare for AGCO to file for a patent,” Ball says. “Now we have over 100 applications filed a year and that number is growing by 25% each year.”
Some of the best AGCO technology now available, according to Ball, includes the continuously variable transmission (CVT) from Fendt, the e3 engine technology for Interim Tier 4, and the new Gleaner combine technology.
Here are some of the new products and technologies introduced by AGCO at its recent launch in St. Paul.