news Zetor Tractors a.s. - from 2025 no own engines/transmissions anymore, but ZF, Deutz and Carraro!

Source: Zetor přestane vyrábět vlastní motory, majitel chce až půlku firmy prodat - iDNES.cz (Zetor přestane vyrábět vlastní motory, majitel chce až půlku firmy prodat - iDNES.cz - https://www.idnes.cz/brno/zpravy/zetor-prestane-vyrabet-motory-tractory-brno-blaskovic.A231115_143358_brno-zpravy_krut )
November 15, 2023 3:23 p.m


Short and sweet:

• Zetor will stop producing its own engines and transmissions from 2025, instead of this Zetor focus on ZF and Carraro gearboxes/axles and Deutz engines (see the new 2024 Forterra conming up)
• The Slovakian HTC Holding as the owner wants to sell up to half of the company to an investor
• But Zetor does not plan to end production in CZ, on the contrary, they want to expand and bring new models onto the market

Instead, according to the source, engines and transmissions will be purchased in Germany (Deutz, ZF) and Italy (Carraro).
This means that around a hundred of the current 399 employees will be laid off, but there are no plans to completely stop production at the Brno site (Brno, CZ), which the CEO explained on Wednesday in the “Hospodářské Noviny” (HN).

At the headquarters in Brno they want to concentrate on the development of tractors and no longer on emissions standards for tractors. You have to know that emissions standards similar to those in Europe are to be introduced in India in the near future, so you can no longer avoid new engines. Now these will be purchased from Deutz.
From January 2025, Zetor will no longer be produced with its own Zetor engine and transmission, which would mean the end of the well-known Proxima and Forterra models. The latter will be replaced by a successor with a Deutz engine and ZF transmission in the near future.

See also here:

https://www.zetor-forum.de/themen/n...23-forterra-120-171-ps-alle-fotos-infos.7679/

In the future, Zetor wants to have the development, marketing, sales and assembly of tractors for Europe and the USA in Brno. Production for other regions of the world has now simply become too expensive in the Czech Republic. However, Zetor wants to return to the former traditional markets in Latin America, Africa and Australia by 2028 and needs to significantly reduce production costs to do this.




By laying off employees who become redundant, Zetor wants to save over CZK 200 million (EUR 8.18 million) in costs.
Blaškovič: “At Zetor, material costs make up around 86 percent of the tractor price. And in India they are up to a third cheaper.”
However, in his opinion, speculation about the end of production in Brno and its complete relocation to India is unfounded.
Blaškovič: “Zetor tractors will continue to be produced in Brno and will continue to make up the majority of Zetor’s operating profit.”

Zetor Tractors a.s. I continue to make losses, but they will decrease. According to the article, HTC Holding is looking for another investor, among other things, because of the expansion of production to India. They want to transfer up to half of the company shares to other investors, but also continue to hold on to Zetor.

Blaškovič: “Zetor’s loss will be around CZK 80 million (327,000 euros) in 2023, but it is difficult to predict this for 2024.”
As early as 2025, Zetor Tractors a.s., the Brno part of the manufacturer, is expected to generate a positive gross operating profit of CZK 189 million (approx. EUR 7.73 million) thanks to savings, and in 2028 they want to sell new 356 model tractors CZK million (approx. 14.5 million euros).




Well - I would say stormy or eventful times. You can be excited. Above all, I wonder how long Zetor will continue to supply spare parts with original spare parts for Proxima and Forterra...

 

[Joachim]

Another source for this news :

Zetor v Brne nekončí. Naopak, pripravuje výrobu veľkej novinky s výkonom 170 koní - proficars.sk

Tradičný český výrobca traktorov Zetor v Brne rozhodne nekončí. Výrobca dementoval správy, podľa ktorých sa presúva výroba traktorov z moravskej

www.proficars.sk

In short, what was previously known is confirmed, the only new information is that the new Forterra with Deutz engines and ZF transmissions should finally be noticeably quieter (perhaps also thanks to the new cabin?).
Unfortunately, I can half confirm that, the Forterra that I took to the meeting this year was subjectively almost louder at idle than at higher speeds. This very hard hammering may not be harmful to the engine, but it makes it comparatively loud. But that should probably get a little better.

After Zetor skipped the Agritechnica 2023 in Hanover, I now hope that they will at least be seen again at the Agra trade fair in Leipzig and I hope even more that, like in Poland, a prototype or pre-series model will be shown here too.
Unfortunately, Zetor has noticeably slowed down in terms of communication and marketing in recent years, but as we all know, ringing is part of business...

 

[international]

i cannot see zetor surviving as they will just be a parts assembler now and as there volume will be so low there cannot be any discount from there suppliers there engine was still good why did they not continue with it after all the effort they put in to designing and improving there transmission and rear axle could have been modernised it feels like who ever is running the show is not an engineer or should i say comes from a technical background so the only thing that zetor are putting in to the tractor will be the cab and as they never listen to customer feedback or from there dealer network how will they get this right it is really disappointing .

 

[Joachim]

there engine was still good why did they not continue with it after all the effort

Precisely because Zetor only sells around 2,000 tractors (and perhaps a good half of them with their own engines) in too small numbers to be able to develop and produce them more cheaply themselves.
And certainly also to relieve some of the burden on the very thin dealer network in Western Europe and America. Deutz, ZF, Carraro are components that are installed in many manufacturers and this should make it easier for customers to find a workshop. At least in Germany, this is exactly what has been the big problem for years.
Sales have also recently weakened in Poland and the Czech Republic - probably two of Zetor's most important sales markets - so Zetor MUST do something and finally make the Forterra more robust and significantly expand the previously almost pointless Crystal series. Exactly what we wanted and should have done with the Maxterra many years ago.

and improving there transmission and rear axle could have been modernised it feels like who ever is running the show is not an engineer or should i say comes from a technical background so the only thing that zetor are putting in to the tractor will be the cab and as they never listen to customer feedback or from there dealer network how will they get this right it is really disappointing .

Sorry, but Zetor's gearboxes are basically outdated. Both Proxima and Forterra. And here too: too few units are sold; having your own development department, production and service is simply too expensive in the long run.
At some point I read in an interview with Zetor that around 3,000 tractors were sold as the lower limit in order to be able to competitively produce large components such as engines and transmissions.
The problem. The Russia deal never seems to have worked properly; we read about a maximum of 50-100 tractors being sold instead of 1,000 as planned. Zetor is too expensive in 3rd world countries because it is manufactured in the EU (electricity, salaries). Even manufacturers like LKT probably won't buy engines from Zetor anymore. In addition, the Zetor engines were recently too loud in the competition, it is not for nothing that they say that the new Forterra with Deutz engine should be quieter, which is certainly not just due to the new cabin.
A current Forterra is simply unpleasantly loud when idling.
Another issue that has never been fully managed: the comparatively fiddly gearshift with long shift travel and sometimes crazy shifting patterns (also on the Forterra).
Zetor needs to reduce production costs in order to still play a role in the market in Europe and the USA, and in the remaining regions it needs even more.

 

[international]

Precisely because Zetor only sells around 2,000 tractors (and perhaps a good half of them with their own engines) in too small numbers to be able to develop and produce them more cheaply themselves.
And certainly also to relieve some of the burden on the very thin dealer network in Western Europe and America. Deutz, ZF, Carraro are components that are installed in many manufacturers and this should make it easier for customers to find a workshop. At least in Germany, this is exactly what has been the big problem for years.
Sales have also recently weakened in Poland and the Czech Republic - probably two of Zetor's most important sales markets - so Zetor MUST do something and finally make the Forterra more robust and significantly expand the previously almost pointless Crystal series. Exactly what we wanted and should have done with the Maxterra many years ago.


Sorry, but Zetor's gearboxes are basically outdated. Both Proxima and Forterra. And here too: too few units are sold; having your own development department, production and service is simply too expensive in the long run.
At some point I read in an interview with Zetor that around 3,000 tractors were sold as the lower limit in order to be able to competitively produce large components such as engines and transmissions.
The problem. The Russia deal never seems to have worked properly; we read about a maximum of 50-100 tractors being sold instead of 1,000 as planned. Zetor is too expensive in 3rd world countries because it is manufactured in the EU (electricity, salaries). Even manufacturers like LKT probably won't buy engines from Zetor anymore. In addition, the Zetor engines were recently too loud in the competition, it is not for nothing that they say that the new Forterra with Deutz engine should be quieter, which is certainly not just due to the new cabin.
A current Forterra is simply unpleasantly loud when idling.
Another issue that has never been fully managed: the comparatively fiddly gearshift with long shift travel and sometimes crazy shifting patterns (also on the Forterra).
Zetor needs to reduce production costs in order to still play a role in the market in Europe and the USA, and in the remaining regions it needs even more.

The transmission could do with extra powershifts but they finally got a short throw shifter in which did fix one issue the rear axle needed a heavier half shafts only issue we used to find was brakes could stick on as linkages could seize and brakes fail to release fully same with the power shifts the little air shafts up on top of the transmission could result in clutch packs half opening or closing but that now will be confined to history as zf different design different problems. So cab is where zetor is going to put there main effort in to design two things i always liked about Zetor cabs was room behind the seat and a very wide cab but with a wide cab its hard entering and exiting as the top step is starting further out from the chassis so instead of been a stairs step its more like ladder steps . i always though to my self instead of having frames less doors have frame doors with a plug that would fit in to the cab floor this would fix that problem manitou does this on the side boom loaders and ih did it on the 88 series tractors i hope they take in to account loader mounting and central trye inflation system as now,s the time to include items as they retool the factory the new model.

 

[Renze]

Crazy times indeed. We see happening what we told them was going to happen 15 years ago:

Western dealers: Our customers are going to a competitor because i cant offer a six cylinder, and once they have foothold, the customer trades his Forterra and Proxima too. Zetor : we dont care, we can sell lots of 100hp tractors to Polish part time farmers with EU subsidy.
Subsidy dries up: Zetor: We will sell 1000 tractors a year to Russia. Russia makes war. Zetor: we will stop producing own components.

Nowadays the Polish market needs the same tractors as the Western European markets, which Zetor neglected for 20 years, they have become irrelevant for trade partners and ababdoned, so now sales have slumped.

They blame Covid, supply chain issues and drought... While dairy farms have never been more profitable with milk prices of the last 2 years in Western Europe. But they neglected this market.

i warned that they would loose their sales channels in Western Europe if they didnt offer a 6 cylinder main tractor for the average farm (small farms buy used tractors, not new) and i warned that it was dangerous to rely solely on the subsidy driven Polish market, as it wasnt sustainable market share. And it shows.
I just find it absurd that it just comes true what we've been saying for 15 years and nobody in Brno acted... Now its too late.

Its funny that HTC thinks they will find a buyer for anything less than 51% of the shares... they fucked up so nobody will put money in it when HTC still has veto power. Next to that, whats it worth now it has allmost collapsed ?

They are DONE in the West. They might sell some tractors in Poland still, but they wont acquire new dealers with confection tractors that are not cheaper than New Holland.

With the new cab and spec level they have finally seen the light: Luxury electohydraulics on a manual gearbox are like a flag on a mud barge. Customers complained about lousy ergonomics and poor finish, so they got fancy flip levers that made the tractor too expensive for its basic transmission.
They seem to do it right, this time, but theres no dealers left to sell them.

 

[Renze]

Sorry, but Zetor 's gearboxes are basically outdated. Both Proxima and Forterra.

Forterra: Yes, they need a semi powershift with 3 or 4 ranges and an 8.5 ton rear axle in the Forterra segment. Next to that, when Zetor came out with the HSX, dealers demonstrated a HSX with the powershuttle, and once customers were sold on the powershuttle, they bought a New Holland for the same money with the PowerCommand gearbox with 4 powershifts and automatic range change.

So: The Forterra is not competitive and would need extensive modernisation, in this financial situation not worth the investment.

The Proxima on the other hand, was Zetors most sold model (50%) and i disagree that it is outdated: If we look at SDF, Massey Ferguson, ZF, the manual transmission is very much alive in this size.

I dont know how much Zetor developed their powershuttle further, but thats a matter of software. On the early powershuttles, the Dutch importer mounted a flow control valve to tame the shuttle when doing PTO work like mowing: This was to make the clutch aggressiveness independent of engine rpm.
The 80-120hp compact class is the only class in which Zetor is competitive in price vs. performance. They already developed them, all they have to do now, is to produce them... It has been their No.1 seller for the past decade...

I think it would be a mistake to strip the company of all assets, if they get this new Forterra right, and show a 210hp six pot prototype as soon as the 4 cylinder goes on sale, (former) dealers might start believing that Zetor is a brand worth representing, and if the Central European market revives, and their Western European sales network is reactivated with competitive six pots up to 210hp, they will soon enough make money on Proximas again...

I mean, the market slump in Central Europe due to drought wont last forever, and the market surge in Western Europe due to the high milk price in Western Europe they couldnt profit from because they neglected their dealers for too long. If they hadnt neglected Western European markets, they wouldnt run dry now the Eastern European market is in a crisis, and they would have the tractors Polish farmers want to buy by now.

 

[Joachim]

The Proxima on the other hand, was Zetors most sold model (50%) and i disagree that it is outdated: If we look at SDF, Massey Ferguson, ZF, the manual transmission is very much alive in this size.

It is technically behind and recently there have been repeated technical problems that were partly production-related and partly design-related. The biggest point of criticism here is often the comparatively awkward, sluggish shifting and too few powershift stages.

 

[Renze]

The biggest point of criticism here is often the comparatively awkward, sluggish shifting and too few powershift stages.

Look at Case Farmall models:

Case IH Farmall 90 U – 115 U / Steyr Multi 4095-4115 – Konedata

konedata.net

The base models are 12/12 mechanical shuttle, and 24/24 with 2 stage powershift and powershuttle.

Then the Pro model utilises a ZF 32/32 with 4 powershifts and automated gearshift.

In the current series, they have named the Farmall Pro version with ZF powershift Luxxum instead of Farmall U Pro, but Zetor is going to waste money if they put their money on a Luxxum equivalent in the 100-120hp class and drop their own 12/12, 16/16 and 24/24 versions.

Or in fact the 16/16 Proxima Plus never sold well here as soon as the Power came out, as it wasnt that much more expensive than the Plus and people wanted the powershuttle.

So, the ZF transaxle cant replace the Proxima, it can only provide a higher specification addition.
I dont know how they expect to find the money to invest in TWO new ranges, one with 12/12 synchro and 24/12 two speed powershift and powershuttle with Carraro transaxle, and one with 32/32 ZF automated transaxle in the 100-120hp compact class, but i think they are overreacting now they finally realise what the effect was of the course they ran in the past 15 years. (Like they did when they added electronic remotes to a manual Forterra gearbox)

The big difference between Forterra and Proxima market segment, is that the Forterra is the only manual transmission in the market (apart from JDs PowerQuad Plus, but JD only keeps offering it because the investment has payd itself already in the 90s and 2000s)
Some people want more powershifts in a 100-120hp compact, but if the market was that big, CNH would have built a lighter version of the ElectroCommand instead of buying it from ZF... the ZF gearbox really serves a niche in this compact bracket.

 

[zetorfanpl]

Renze, there is a lighter version of ElectroCommand, in NH T5 EC New Holland T5.95-T5.120 - https://konedata.net/traktorit/new-holland/new-holland-t5-95-t5-115/
Is also the third manufacturer of drive systems - HEMA from Turkey. They started producing their HEMA H104.120 transaxles and on last Agritechnica Show their they presented Hattat T4.125 with this transaxle. https://hema-usa.com/wp-content/uploads/2023/09/H104-Series-Transaxles-Catalog.pdf
Now Zetor use HEMA front axle in Major series.

View: https://youtu.be/20zDHOFkg2Q?si=LPzwlR86w9plrySd&t=265
In Zetor Gallery is also Proxima Cabrio with HEMA front axle.

 

[zetorfanpl]

In 1:10 Proxima prototype with Deutz engine 7 years ago

View: https://youtu.be/CaDZszNN5TM?si=RQYblA5Lxvjs-VP-&t=70

 

[Joachim]

Yes, there is also said to have been a prototype of the Maxterra with a Deutz or Perkins engine. The idea is not new, but unfortunately Zetor took his time.
So far there is hardly any official news about the new model, which is supposed to come onto the market this summer. Zetor also skipped the Agritechnika in Hanover (Germany) - so no news there either.
According to employees at Zetor Germany, they probably want to exhibit at the agra trade fair in Leipzig (Germany) - I'm curious whether the new model will be on display there. But I have little hope.
The agra trade fair is in mid-April this year.

 

[Renze]

Yes, there is also said to have been a prototype of the Maxterra with a Deutz or Perkins engine. The idea is not new, but unfortunately Zetor took his time.

There was a Maxterra prototype with FPT for sale on a Czech ad website last year.

So far in the past 22 years, HTC management of Zetor has been pretty catastrophic. Poorly developed tractors like the 11441 scared away customers to other brands, postponement of the Maxterra required to keep dealerships market share and profitability, led to a mass exodus of dealers, so now there is no sales network to sell Proxima and Forterra, so the production numbers drop so low that they cant make them profitable anymore...

The only thing they did right was the Proxima: Price competitive in its class and their most popular model, but now they want to cancel that too ? If they rebuild their sales channels by allowing their dealers to offer a 200hp six pot in order to keep other brand dealers away from their customers, the Proxima will get sold again as well...

 

[Renze]

Just another example:

Dodge trucks had a 4% market share in pickup trucks. The pickup truck engineering staff was let off, so they sent a Dodge with the most powerful 360 cubic inch V8 to Cummins engineering facilities so Cummins could fit their own engine in the engine bay and test it according to Chrysler protocol. On the way to meet the Cummins team when they said they had it fitted, the product manager was overtaken by a Dodge Ram at high speed. It turned out that Cummins did some late minute testing before the meeting and had to get back before he arrived
The original batch was planned for 1000 6BT engined Dodge trucks, but in the first year they sold 10.000 which was more than Cummins could build. When word got out that Dodge offered a great diesel engine, they sold 100.000 within 3 years.
Apart from that, the amount of customers that were drawn to the Dodge dealers to look at the Cummins diesel but bought a gasoline V8 anyways, was big enough to grow Dodge market share from 4 to 20% giving Dodge the budget to totally redesign their 70s based trucks and introduce the 2nd gen, which was an absolute hitter and grew their market share even more.

Moral of the story: Zetor needs to introduce a 160-210hp six cylinder range first to draw customers to their dealerships. Then customers who like it but dont need it, will buy the ZF/Deutz 4 cylinders as well. But the ZF/Deutz 4 cylinder models wont attract the new buyers Zetor needs, to its dealers: People get interested in Zetor when there is a nice six pot in the showroom, proving that Zetor is a serious manufacturer again, a purchase neighbours dont judge you upon, even when they later decide to settle for a 4 cylinder because they actually dont need more.


View: https://m.youtube.com/watch?v=w183xsiCU18&si=wC9jxzcz8XZ_cOuL