John Deere sells out?

[Ale-8(1)]

MSN

According to The Guardian, the American agricultural equipment manufacturer John Deere -- with its signature tractors painted a brighter green than the color of money -- has rewarded executives and shareholders with $10 billion in profit while slashing hundreds of jobs as part of a plan to move production to Mexico.

For fiscal year 2023, John Deere used its $10 billion profit to provide massive compensation for company bigwigs. A total of $26.7 million went to CEO John May. Shareholders saw dividends of more than $1.4 billion.

Meanwhile, since October, the company has slashed nearly 1,500 jobs in Illinois and Iowa. Another 103 workers opted for early retirement following the announced move to Mexico.

 

[gunzo]

A can of worms to sort out, but read JD moving one division, not everything. OTOH, they've had tractors made in India, S. Korea & Germany if not more places. The internet just makes more of us aware,,,, or confused?

I have a 1969 JD & it's a pretty heavy duty chunk of iron for it's size. "Made in Germany"

 

[Gator89]

Fairly certain my 2008 JD lawn mower has a Japanese engine and who knows what else. 16 years and runs as good as ever.

 

[davevabch]

Mexico gets richer, America Poorer. Welcome to the World of Brandon.

 

[hittman]

Thank politicians, tax codes and Unions!
And little to no tariffs on imported items that compete with them.

 

[BULL'S-EYE]

They already have. As I recently learned during a repair session, my John Deere ZTR mower has quite a good number of it's ridiculously overpriced components manufactured in China...It's eventual replacement, will most definitely be of a different brand.

 

[hittman]

That's cause the Chinese government supports manufacturing there.

 

[Killer Bee]

yep, gettin more and more difficult to keep old machines in service

I was hoping to go through that 1957 model 60 someday

 

[JackBull]

The laid off workers can just write code.

 

[krw]

Wasn't it 3? Yrs back that JD workers went on strike and got a huge pay raise?? JD can make tractors cheaper elsewhere. Just basic economics 101

 

[Mobuck]

The JD hay and forage harvesting equipment plant in Ottumwa Ia shutdown and production is moving to Mexico(?). The workers were greedy and threw away their well paid jobs in an attempt to 'force' Deere to pay even more. I'm not sympathetic to such things.
Deere just like most other manufacturing business has been 'out sourcing' components for decades because Americans are too greedy. I'm no more a fan of supporting turd world countries BUT stockholders, business advisors, and managers all look at the bottom line. He who gets credit for more profit gets the worm in the manufacturing world.

 

[Wvfarrier]

I habe feeling this will bite them in the proverbial rump

 

[pisgah]

Many years ago (1980's) my dad was shopping for a new tractor and was attracted to the made-in-Germany Deutz, but was talked out of it by a slick Massey-Ferguson salesman with the, "It is 100% Made-in-USA!" spiel.

When the M-F was rolled off the delivery truck the first thing I saw, cast into the transmission casing, was "Hecho in Mexico"...

 

[peachhead]

Blame the unions.
Blame the EPA.
Blame OSHA.
The company is doing what it is obligated to do, provide a profit for their shareholders.

 

[tazbigdog]

Yeah, I saw this yesterday. Six hundred employees are to be laid off.

Didn't this happen before Trump was elected? A company, I forget who it was, was going to move to Mexico, and Trump said when he was elected, he would stop them. And he did. Could this be deja vu?

 

[Ale-8(1)]

Wasn't it 3? Yrs back that JD workers went on strike and got a huge pay raise?? JD can make tractors cheaper elsewhere. Just basic economics 101

Yep, 2021 . . .

John Deere strike ends as union workers ratify agreement

UAW says the deal includes an $8,500 signing bonus and a 20% increase in wages over the lifetime of the six-year contract, with 10% this year.

www.agweek.com

 

[Fox Mike]

If you think like a CEO of any company, their object to to make money. So, that being the case, why pay a union wage of $xxxxx.00 when I can move my operation to somewhere where there isn't a union and the employees work for less wages and produce the same item. It's simple math.

 

[jack black]

Unions were needed once now they just continue to destroy America.IMHO

 

[weaselmeatgravy]

Fairly certain my 2008 JD lawn mower has a Japanese engine and who knows what else. 16 years and runs as good as ever.

I have a small JD utility tractor, a 1991 model 855, hydrostatic 4x4 with 3 cylinder Yanmar (Japanese) diesel. It has served me well for mowing, snow plowing, and brush hogging since I bought it used in 1993. Until recently, that is. Suddenly, it won't start. I've checked a lot of things but finally gave up and called the nearest dealer (the one I bought it from closed up about 5 years ago) and they are coming tomorrow to get it and take it into the shop. Everything Deere costs about 3X what it should, so I'm anticipating a hefty bill. I'll be down $180 just for pickup and redelivery and that is only because I am within 30 a mile radius of the shop. Any further than 30 miles is an extra $3.50 per mile!! I used to have an open trailer that would haul it, but I sold the trailer a few years back when I was about to get an enclosed trailer and needed the parking spot, but the deal on the enclosed trailer went bust after my old one was gone. Whenever we finally move, we are leaving the JD with the house and getting something else at the new place.

 

[gunzo]

Blame the unions.
Blame the EPA.
Blame OSHA.
The company is doing what it is obligated to do, provide a profit for their shareholders.

These things are a huge burden on a manufacturing company, among others not coming to mind at this time, along with product liability, lawyers & related.

But above & beyond the all those pitfalls,,,, I couldn't believe my eyes & ears when the workers struck a few years ago & what their demands were. I'm thinking,,, what the hell are they thinking?

Well, JD folded,,,, for a while,,,, & gave them unreal raises, along with a plan to do something about it at a later date. And this is the plan. I see no problem with it,,,, considering.