After a growth spurt, New Holland continues the momentum
Almost four years ago, Abe Hughes was appointed vice president of New Holland North America with one goal—get the brand back in the game. In January, Farm Journal had the exclusive opportunity to speak with the executive about how he’s turning around the company.
Hughes reports that in the past four years, the New Holland division has doubled revenues and tallied record profits through a disciplined approach to financial management.
"This is sustainable profitability; it’s not based on gimmicks or pops in the market," he explains. "The New Holland brand has got a couple of shining stars and a halo above it again."
Paving a new path. The achievements have brought kudos and corporate resources from CNH management. Now, Hughes says it’s time to build on their momentum. The company is working to fill out its product lineup for what they identify as a customer base of mixed farmers.
"We don’t just produce the equipment," he says. "For example, we don’t just concern ourselves with how the hay is cut but also how it is conditioned and how the hay becomes high-quality feed. We don’t just think about how to get the grain harvested but the quality of that grain or seed when it reaches the combine’s grain tank."
In 2013, the Genesis name made its second debut in celebration of its 20-year anniversary, except this time, the T8 models are geared with an AutoCommand continuously variable transmission and outfitted with a range of precision ag products.
A partner with Growth Energy, the machinery maker offers special discounts for farmers who deliver at least 55,000 bu. of corn to an American Ethanol facility. The farmers join the Producer’s Club and receive discounts at New Holland dealers for a no haggle, no negotiation price.
To the market. In the past three years, the company has launched 25 new products across its three segments: cash crop, livestock and dairy, and pro work tools (created in 2013 and includes rural lifestyle, landscape and construction).
"The main thrust moving forward is that our equipment is smart. The design and features are smart. That all adds up to enhanced productivity," Hughes says.
New Holland is launching a new brand platform, New Holland Smart stories. The campaign will feature their customers, including Ron Clauson of Rochester, Ind., whose operation spans three generations and includes 3,300 acres, hogs and beef cattle.
"We run New Holland machinery because from the equipment to the dealer, I know I’m connecting myself with all of the resources New Holland has to offer," Clauson says. "Our dealership is very progressive and very smart. They are on the forefront, which keeps me and our farm on our toes and ahead of the game."
In its journey, Hughes says the company is taking its own path. "We have to play a different game than our competitors," he says. "We have to be more nimble. I see some brands becoming more and more corporate. We are incredibly sincere. It’s the culture of the business. A handshake still really matters at New Holland."
You can e-mail Margy Eckelkamp at email@example.com.
To read about how New Holland is engaging their dealer network and read "New Game Plan" from Farm Journal’s Late Spring 2012 issue, visit www.FarmJournal.com/New_Holland
- February 2014