New Holland is doubling down on its efforts to go full line with the announcement that it has expanded its partnership with fellow Italian manufacturer Maschio Gaspardo.
The two companies have announced a new cooperation and licensing agreement for the distribution and supply of New-Holland-branded mowers, mower conditioners, tedders, and rotary rakes in Europe, including parts supply and service.
Maschio Gaspardo will handle the distribution and supply of the New Holland-branded equipment rather than set up a separate supply channel.
According to New Holland, the aim of this latest move is to ensure that its customers continue to receive high-quality hay and forage solutions, along with enhanced support and service.
The deal does not encroach on New Hollands' legacy baling business, though Maschio Gaspardo does produce its own square and round balers.
In a statement, CNH said that this latest reinforcement of the partnership will see both companies co-define future products in line with customer needs, with Maschio Gaspardo leading the engineering efforts.
New Holland is not the only company to work with Maschio Gaspardo in this way,
For instance, Argo Tractors' South African branch is deeply involved with Maschio Gaspardo, with the company acting as importer and distributer for a greater range of the Italian manufacturer's equipment.
Although not sold under either the Landini or McCormick brand, Argo Tractors is able to go full line in South Africa thanks to the arrangement which has been in place for many years now and so would appear to suit both sides.
All three companies are headquartered in Italy, though CNH is ultimately based in the Netherlands, and they act in cooperation to their mutual benefit.
Maschio Gaspardo in particular benefits from this arrangement, which provides it with an enlarged distribution network that it need not manage directly.
However, there are drawbacks in such arrangements, for tractor manufacturers tend to insist on a much more robust and involved dealer process when it comes to selling machinery, and this is applied equally to implements.
Implement makers, on the other hand, tend to be more streamlined and flexible when it comes to getting the product on to the farm, which this counts in their favour with the dealers.
Dealers have previously indicated that CNH prefers to see 'clean' dealers yards, i.e., dealerships with few if any alternative brands on display or on offer.
Just how much pressure will be applied to European dealers to discontinue other makes that compete with the New Holland range is a question that many dealers will now be asking themselves.