Hanlon Machinery of Dundalk, Co. Louth, has given notice to its customers that after four decades of selling and servicing John Deere products, the manufacturer has withdrawn the agency.
In a statement issued to its customers yesterday (Thursday, July 13) the company said: “We have been advised we will no longer be part of the John Deere family and our 42-year John Deere franchise will end 31st October 2023.”
The reason given for the decision referred to John Deere’s future growth strategy plan which entails “the reduction of John Deere dealerships globally”.
The statement, from Michael Hanlon, managing director of the company, goes on to express its appreciation and gratitude to its dedicated team and to its long-standing and loyal customer base.
It also notes that in the meantime it will continue to provide the usual support for sales, service and warranty.
John Deere consolidation continues
While John Deere and other large manufacturers have made no secret of their desire to see fewer, but larger, dealerships selling their product, it is always regrettable that family-owned businesses serving the local community are the first to suffer.
Tractors and machinery are becoming ever more complex with a much wider skill base needed to sell and service it all.
Digital technology, in particular, is starting to demand a greater degree of specialisation and Deere has been urging its dealers to establish a knowledge base within their firms to serve this growing facet of agricultural mechanisation.
While the logic can hardly be faulted at boardroom level, it ignores the importance of being close to the customer.
Irish farmers will tend to buy from their local dealer, and this very often takes precedence over the brand being sold.
John Deere is big enough to weather the loss of a few sales here and there in its march towards super dealerships, but losing site of the importance of remaining local will by no means expediate the process.