DUE TO the changes that have taken place in the machinery industry over the last couple of years, Valtra is set to restructure its UK dealer network.

The most significant driver for this decision has been Claas’ acquisition of Renault tractors and subsequent decision to market the range through Claas dealers in the UK.

In 1999 Valtra UK agreed a strategic alliance with Claas dealers to market the Finnish tractor line in Great Britain. However, following the Renault acquisition, Valtra‘s management realised that the agreement was no longer going to be a viable option.

“When Claas announced its decision last year, we quickly deciphered exactly what it mean would for us,” said Mark Broom, managing director of Valtra UK.

“Although it‘s not throwing other franchises out of its dealerships, Claas is understandably very keen to push its own tractor line.

“Consequently we‘ve had to come up with a strategy to ensure that we can maintain dealer coverage for the majority of the UK.”

The plan that has developed involves three options:

1. 
   
   Appointing exclusive Valtra dealerships
   
   
2. 
   
   Recruiting dual-franchise dealers who can provide a dedicated Valtra branch and staff
   
   
3. 
   
   Setting up dealerships to market several brands from within the Agco parent company, typically Fendt or Challenger.
   

“This does not mean that we’ll be terminating our franchises with all Claas dealers, especially if there’s no alternative,” said Mr Broom.

“However we have issued notice to a number of outlets. We‘ve appointed nine new dealers and are in discussion with a further eight.”