Case sales rise but residual values drop

Manufacturer back on track following demise of UK dealers, CRMS and Saville Tractors.

Case has heralded an increase in total annual sales of more than 10% as a sign it is over the worst of its UK dealer problems, despite evidence of a slip in residual values and even stronger growth at sister company New Holland.

George Russell, Case’s European vice president, said he felt the company coped well following the demise of its two largest UK dealers, CRMS and Saville Tractors, saying: “We are not quite where our budget is, but given the situation, I am not unhappy.”

But there was evidence last week that despite the manufacturer’s efforts, consumer confidence had been affected by the upheaval, starting in May when CRMS put itself into administration.

Plant auction specialist Euro Auctions UK’s auction co-ordinator Raymond Donnelly confirmed that residual values for Case machines had “definitely dropped”, despite their high quality, with a year 2000 13t machine now fetching around £13,000, compared to £16,000 a few months ago.

However, Russell said it would be business as usual at Case in a matter of “not weeks but days” as it negotiates to find replacements for Saville Tractors’ five depots. He said: “We have some new dealers online now, and we have new machines ready to sell them,” although he said it was too early to reveal their identities.

Meanwhile, Case sister company New Holland, which was unaffected by the difficulties, has seen a 22% increase in UK shipments over 2005 YTD, in a market that grew approximately 3% as a whole.

Steve Orr, marketing and sales development director for New Holland, said “we are attacking specific marques” but would not be drawn on whether its success was affecting Case, saying “it would not be correct to publish our strategic focus”.

[Contract Journal, 15 November 2006, p 16]