Farm Progress

Company is expanding sales, adding new machines including a tractor targeting the U.S., and dealing with supply chain issues.

Willie Vogt

August 26, 2022

8 Min Read
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AGCO LEADER: Eric Hansotia, chairman, president and CEO, Agco, kicked off the global media conference for Fendt that offers a look at new machines, insight on the company’s approach to technology and its approach to sustainability.From Fendt global media conference

The Fendt brand carries some weight in Europe, but that market power is growing globally, as the brand’s management pointed out in a global media conference early Friday, Aug. 26. The brand, which is owned by Agco, is becoming a premier name for the U.S. based firm.

Eric Hansotia, chairman, president, and CEO, Agco, kicked off the global news conference, held outdoors in Germany where local media could see the new equipment. International media took part virtually. Hansotia kicked off his comments showing that Agco’s net sales are up 37% since 2020 showing a rise of $9.1 billion in 2020 to a guidance of $12.5 billion for 2022. During that time the company has also boosted operating margins even as the investment in research and development continues to rise.

“Agco is working hard to get super close to our customers,” Hansotia says. “We want to be the most farmer-focused company in the industry.” He adds that the company through its brands wants to work with farmers to overcome the “pain points of agronomy of the crop and the economics farmers operate under to help them be more profitable, productive and sustainable.”

He turned his attention to the role of the Fendt brand at Agco, which has become more prominent in the last five years as the company strategy has become clearer. Hansotia notes that the rising need for precision agriculture to help farmers manage inputs more closely during a time when farm margins are crimped even as prices rise.

The company is looking at the market in different ways, he explains.

First, the use of technology features on machines including the new Fendt 700 tractor line. The generation seven version of this tractor, which will offer a row crop version suitable for the U.S. market, incorporate the latest Fuse brand technologies. The new machine will debut at the 2022 Farm Progress Show Aug. 30-Sept. 1.

Second, Hansotia says having the tech on new machines is important, but the company will also have a retrofit channel for technology. “This will be a technology module, a precision agriculture opportunity that can be sold directly to the farmer to put on their existing machine to turn a less capable machine into a more productive machine,” he says. That strategy is in play with Precision Planting technology and other tools.

He notes that another approach is to help the farmer with service intervals and work with growers to identify service issues before they happen. “This allows the dealer to be more of a partner with the farmer and can grow the service and parts business,” he says.

Finally, the Fendt business is going to be grown globally and farmers will see a full line of Fendt products coming to market. That growth is to be paired with industry leading customer support as part of what Hansotia has identified as the Fendt experience.

The company has already added the Momentum planter, the Ideal combine, and the Rogator 900 to the Fendt line along with new tractors in the past four years. The new 700 series machine builds on that presence in the U.S.

Innovation ahead

Fendt is looking ahead at new ways to meet the market. Hansotia points to the e100 electric tractor concept. “The electric tractor, the e100 will provide an electric solution for low horsepower farming,” he says.

The e100 is in development and could be as big as 80 horsepower when it comes to market. Christoph Gröblinghoff, vice president, brand head, Agco/Fendt, added during the conference that the initial e100 would have a four- to five-hour working time in continuous operation and it would be quick. “We are coordinating with Walter Wagner and his development team when it comes to future battery technology,” Gröblinghoff adds. “We have investigated a 150 hp and an e300 that would indeed be feasible.”

Wagner is vice president and managing director of research and development at Fendt.

Hansotia notes that the e100 is a starting point and that Fendt is investigating use of hydrogen fuel cells to power bigger machines too. The middle-level machines might be served with a form of hybrid machine. All this is part of the effort to be more sustainable in the market, he adds.

The company has been challenged by pandemic issues from lost labor to busted supply chains. Gröblinghoff notes that Fendt saw the price of chips rise 100-fold compared to precovid times. Changing steel prices and other supply challenges also make it more difficult for Fendt to determine the price of a tractor in the future. That supply chain uncertainty isn’t going away soon: “We anticipate the issues with chips to last for the next 24 months,” he adds.

The company has been working to reduce the level of nearly-finished machines to work through supply issues and Gröblinghoff says the company is better managing the supply chain issues.

The new Fendt 700

The company highlighted a range of machines for the global market, many not yet sold in the United States, but one machine will be headed to North America – the generation seven Fendt 700 tractor line. Roland Schmidt, vice president Fendt marketing, did machine walkarounds during the event including the new tractor.

As Fendt has done with its 900 and 1000 series machines, the 700 will now have a row crop version suited to the North America market. That’s a first for this model range from the company. 

The new 700 will be powered by a new six-cylinder, 7.5-liter Agco Power engine designed to provide high torque at low RPM. That’s a hallmark of the newer Fendt machines, boosting fuel efficiency and providing quieter operation. For the 700 that means providing 1,034 pounds-feet of torque at 1,300 rpm. “The machine has high torque at low speed and its one of the first uses of these new engines,” Schmidt says. “It also features intelligent [Fendt] Dynamic Performance which can add another 20 hp, slightly exceeding the 300 hp limit [on the top end model 728].”

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There are five models ranging from 203 to 303 hp. The machines are available in both the VarioGrip and 60-inch row crop versions. The row crop versions can be ordered with single- or dual-tire configurations from the factory.

The Generation 6 700 series will remain in the line providing buyers different options to meet specific needs the generation 6 machines range in horsepower rom 140 to 240, Schmidt says. That brings an overlap in the 200 to 240 hp range which will be sold in parallel. “The buyer can opt for the lighter tractor or the heavier tractor,” he says.

The 700 will be available in three top speed ranges – 25 mph (40k); 31 mph (50K) and for the first time 37 mph (60k). With that high-torque, low engine speed design he top speed machine its that at 1,450 rpm. For the 25 mph machine, the engine is running nearly at idle, or 950 rpm.

The new machines will also be outfitted with the latest FendtOne technology farmers can use for precision agriculture.

Sustainability and autonomy

The event, conducted at an outdoor venue in Germany had visitors dealing with a challenge all of Europe has seen this summer – heat. According to comments made by speakers, the event which started at 10:30 a.m. local time was already seeing the temperature reach 95 degrees F, making for a hot tent. But it also brought into focus the issue of sustainability.

Fendt executives discussed the electric tractor issues, and the look forward to hydrogen power, which many see as a better answer for higher horsepower machines. The company is building hydrogen fuel cell prototypes that will go into the field soon to research the concept for farms.

Walter Wagner who heads up research and development, notes the market will need an infrastructure for hydrogen production for the customer. “We are at the beginning of researching hydrogen but we are well on our with with the first fuel cell-based tractors to promote fundamental research,” he adds.

One area of interest is autonomy. Hansotia says there is a lot of “buzz and energy” surrounding autonomy, and he says that in some market segments the technology has a role to play. “But today there a lot of things the farmer does in the cab,” he observes. “We’re working to make sure the machine is working at its highest performance level and our focus is automating features so the machine could run on autopilot mode which can help the farmer be more productive today.”

Hansotia notes that the company has the tech for autonomy but “we still need the operator in the cab for many functions” on the road to autonomy. The Xaver electric swarm system shows that the tech is advancing, but better automation is needed before moving to full autonomy, he says.

About the Author(s)

Willie Vogt

Willie Vogt has been covering agricultural technology for more than 40 years, with most of that time as editorial director for Farm Progress. He is passionate about helping farmers better understand how technology can help them succeed, when appropriately applied.

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