A few decades ago, Massey-Ferguson dealerships were common across the country. Those selling Fendt tractors were, well, not common.
However, Massey fell on hard times in the 1980s and many dealerships didn’t survive.
In the late 1990s, Agco came into the picture. It bought Massey and eventually brought Fendt into its corporate fold as well. It then took over Caterpillar’s Challenger brand and merged those yellow belted tractors into the Fendt line.
Read Also
Canada’s plant hardiness zones receive update
The latest update to Canada’s plant hardiness zones and plant hardiness maps was released this summer.
Agco has since acknowledged that reestablishing a broad dealer network to effectively sell all that equipment has been a top priority — and a challenge.
One Prairie dealership chain that has been evolving and growing with Agco is AgWest. It had been part of the Toromont Cat dealership chain until Dutch Investment firm Zweegers Equipment Group bought it in 2023.
Under that new ownership, AgWest has expanded its market presence.
“We expanded to Saskatchewan,” says Derrick Webster, AgWest’s director of finance.
“We acquired two Agco locations, one in Yorkton and one in Weyburn. They used to be Agriterra. It was a natural fit for us.”
This summer, AgWest announced it was building two new dealership buildings in Manitoba to better service its expanding market area — one in Brandon and the other in Russell.
“In Brandon, we were still operating inside the same building as Toromont,” he says.
“There was a collaborative agreement to allow us to do that, but we need to be out on our own. We didn’t have enough service bays. We’ll be up to six, plus wash bays, in the new location.”
The Russell and Brandon buildings will look nearly identical, with the Brandon location becoming fully operational by February and the Russell store roughly two moths after that.
“We’ve also opened a small location in Benito,” Webster adds.
“There’s a lot of market there that needs service. Part of that long-term plan is to increase facilities, increase parts stock on hand and have more technicians available.”
Besides the Agco brands, AgWest has been selling Claas combines, which until a few years ago were marketed in North America wearing the Caterpillar name on their flanks as a result of a marketing agreement between the two companies.
However, Cat has since exited that deal, removing itself entirely from the ag equipment market. Claas has since taken over North American distribution of its equipment under its own banner.
However, that has left a mixed-up dealership landscape as original equipment manufacturers establish — or reestablish — themselves in the Canadian market.
It has also effected AgWest’s business. It sells only Claas combines in its Morden store, with a competing Agco dealer nearby. On the other side of the province, in Russell, it sells a full lineup of Claas equipment. Its two Saskatchewan stores sell only Agco equipment.
Webster acknowledges that isn’t an ideal situation because it would be easier to have one consistent market approach across all outlets. However, other legacy dealerships exist, and AgWest, along with the OEMs, have decided to respect those existing business relationships.
Over time, AgWest’s association with Claas may expand further, Webster said.
“Claas is interested in supporting our growth into full product line support. Obviously, there’s a lot of balancing because there are other players at stake. They’re trying to balance their obligations as well.”
Last year, Agco revealed a plan to help further expand its North American dealership reach through mobile service and a stronger online presence, rather than expecting dealers to invest in brick and mortar locations. However, Webster says that decision hasn’t really had an impact on AgWest’s plans to have a permanent presence in more communities.
“For anyone in a small community, it’s a positive feeling that you’re putting roots down. We believe that will pay dividends with our customers. As we invest in their communities, we hope they’ll invest in our equipment.
“Right now, we run 15 heavy-spec service trucks plus light service trucks. That’s always been part of the service offering we have.”
In all, the total cost of the new buildings is approximately $11 million. As well, AgWest will need to add more staff to its roster as it increases its parts inventory to better serve the regions, and it expects to add to its sales staff as it grows its position in the market.
“It goes to show the commitment the (Dutch) ownership group has in coming here,” Webster says.
