news Hard times for Zetor?

... the signs are pointing to a red line at Zetor at the moment.
I hope for the brand that they can turn things around.



I think that Germany has been classified as a less important market for Zetor tractors, thus creating a chicken-and-egg problem: no advertising, no sales, no sales, no advertising.

The last official Zetor news was from June 2024:

https://www.zetor.cz/storyboard/detail/274

Innovation and respect for tradition: we are returning to the numerical designation of the ZETOR tractor series


Recently, at ZETOR, we have experienced significant changes not only in production, but also in the marking of the tractor model series. We are once again returning to our beginnings and tradition, when ZETOR tractors were arranged according to numerical series. This type of marking has many advantages for end customers and for us as a manufacturer. The new marking of the model series allows us to better express the size class of the tractor and the approximate power of the engine. This is intended to make it easier for customers to find their way around our portfolio, but also the market.

Chronologically ordered model number series linked to engine power also provide a clear categorization system, making it easier for customers to see which of our tractors is best suited to their task.

We are currently working on new tractor series that will build on our existing models. These new lines will bring innovations and improvements that reflect the needs of our customers and current trends in the agricultural sector.

We will present the first model series under the new name "Series 6" at the international Techagro trade fair in Brno. It is based on the category currently covered by the current Forterra and Crystal models.

The change in tractor numbering is not just a cosmetic change. This is a strategic step that reflects the transformation of our product portfolio while meeting the needs of customers in the agricultural industry.

We believe that this new system will serve its purpose.

Thank you for being with us for over 78 years!​

and we will also be at a trade fair in CZ in August:


Quite current from the CZ press:

aktualne.cz writes:​

https://zpravy.aktualne.cz/ekonomik...0-lidi-zt/r~686c6eac5e0711efb689ac1f6b220ee8/

The layoffs at Zetor are not ending. 200 people will lose their jobs, the loss has increased enormously.​

Zetor Tractors is not going through a good time. The loss almost tripled, sales fell by a third. The company is laying off even more people than it had planned in the spring. 200 people will lose their jobs, which is almost a third of the original number of employees.​

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The Brno-based tractor manufacturer Zetor Tractors more than doubled its loss last year. In 2022, it managed a loss of 103 million crowns after taxes, and in 2023 the loss deepened to 272 million. Last year, the company's turnover fell by 30 percent to 1.63 billion crowns.​

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This is stated in the annual report published in the document collection . In May this year, the company announced that it would lay off 160 employees, more than half of the workforce. In July, the company announced that it would lay off a total of 200 people by the end of September. According to the annual report, 317 people worked for the company last year...​

Note: In its heyday, Zetor employed around 10,000 people (before the fall of communism), in 2014 there were 783 employees​

• Production of its own engines and transmissions will be discontinued in Brno and these components will be sourced from Italy (Carraro) and Germany (Deutz, ZF) instead.
• Marketing, development and sales departments will remain based in Brno
• the Zetor Tractors a.s. factory in Brno (Brno, CZ) will continue to assemble tractors for Europe and the USA
• According to the 2023 annual report: despite an initial increase in 2023, tractor sales fell significantly over the course of the year, citing raw material prices, rising inflation and financing interest rates, which meant that farmers were able to spend significantly less money on agricultural machinery.
• one of the strongest markets Zetor had to record declines in Poland, one of the most important markets for Zetor. But demand also collapsed throughout the EU, which put Zetor in a precarious situation because it had to deal with storage machines and rising purchase prices for goods and services.
• In 2023, Zetor presented a prototype of the new model series 6, which will replace the current Foreterra and Crystal series
• Zetor is also already planning further model series - probably above the model series 6 and the Proxima will probably also have to be replaced
• Zetor was founded in 1946, after the fall of the Berlin Wall in 1989/90 and the collapse of traditional markets, Zetor was already on the verge of extinction. It only emerged from this crisis after 2002, when it was bought by the current owner, the Bratislava company "HTC Investments".

tn.nova.cz writes:​

https://tn.nova.cz/zpravodajstvi/cl...-podstate-konci-desitky-lidi-dostanou-vypoved

Zetor essentially ends in the Czech Republic. Dozens of people will be laid off
The production of the legendary tractor brand Zetor in the Czech Republic is practically coming to an end after almost 80 years. The Brno-based company Zetor Tractors has announced that it will lay off another 111 employees by the end of July. The main production is to be relocated to India, apparently only assembly from imported parts will remain in Brno.

• currently, in-house production is still running in the so-called "gearbox workshop"
• according to union information, however, it is to be discontinued from 2025
• after that, gearboxes will presumably only be assembled from parts supplied from elsewhere
• employees from assembly and marketing as well as sales and development will remain at Zetor
• despite denials from Zetor Tractors as.: according to reports from the platform tn.nova.cz, there are rumors that the main production will be relocated to India, where Zetor Tractors has a branch.
  I think it is still the stubborn rumor from 2022/2023 that is being perpetuated here, although Zetor has already denied it several times.
• Zetor itself says: "The Brno plant will undergo a structural change by the end of the year (Editor's note 2024), as we will switch to producing new tractor models next year. The production of components, engines and transmissions will end here (Editor's note Brno, CZ) in September this year."
  In addition, they are NOT relocating production to India, but are building an independent tractor series there for the Indian market, says Zetor Tractors a.s.

More news from CZ on the topic of Zetor:

https://www.e15.cz/byznys/prumysl-a...ich-111-lidi-presouva-vyrobu-do-indie-1417506

https://www.seznamzpravy.cz/clanek/...e-strojirenskeho-gigantu-bude-montovna-254405

https://www.info.cz/po-praci-lifest...minulosti-traktor-ktery-nam-zavidel-cely-svet

https://www.seznamzpravy.cz/clanek/...eni-vyrobu-propusti-pres-polovinu-lidi-252452

(Use Google Translate to translate the content and always remember that these are news portals, revenue is generated through headlines, so keep a certain amount of skepticism when reading)

Overall, that sounds like very difficult times - but not like giving up and just doing it.

The fact is:

• Zetor is only "big" with around 100 employees in Brno
• engine and transmission production will end in September 2024
• the old production hall is to be demolished. There is talk of 50% of the production facilities.
• What remains is development, assembly, sales and marketing for tractors for the EU and US markets.
• that the previous main owner, billionaire Martin Blaškovič, has been looking for an investor since 2023 - which certainly doesn't bode well if a billionaire can't do it alone.

But that perhaps explains why they are currently concentrating on the markets that still have the best short-term prospects of success and Germany is not necessarily one of them, you just have to admit that. When the coffers are empty, you just have to see what else you can do to get money back into the coffers. A tough austerity program is then unavoidable. It remains to be seen whether Zetor will be right and remain at its headquarters in Brno (CZ), in a significantly slimmed down form, or whether it will ultimately move to India completely. It also remains to be seen how the supply of spare parts for the existing Proxima, Forterra and Crystal model series will continue in the future.

I see fewer problems with the new models from 2025 ("Series 6", Forterra/Crystal successor), as the important components (engine, transmission, axles) will come from well-known manufacturers such as Deutz, ZF-Getriebewerk (Germany) and Carraro (Italy).

But one thing can be said with certainty: Zetor is probably in its biggest crisis since its founding and one can only hope that they can turn things around and get going again with a changed market strategy.

 

[Renze]

... the signs are pointing to a red line at Zetor at the moment.
I hope for the brand that they can turn things around.

An extrapolation of the line Zetor is on for the past 10 years. They need an investor, and a different vision of leadership. Only investing profits into R&D is what lead to this point, Zetor needed external capital to build the Maxterra in 2009, then this downward spiral could have been prevented.

I think that Germany has been classified as a less important market for Zetor tractors, thus creating a chicken-and-egg problem: no advertising, no sales, no sales, no advertising.

Yes, exactly that. No 200hp tractor to keep their customers from establishing a relationship with another brand dealer, dealers save their own hide and abandon the brand, untill there is no one left to sell them and turnover grinds to a halt.

one of the strongest markets Zetor had to record declines in Poland, one of the most important markets for Zetor. But demand also collapsed throughout the EU, which put Zetor in a precarious situation because it had to deal with storage machines and rising purchase prices for goods and services.

Yes, they fully focused on two markets: the Polish market that was driven by EU subsidies. This market dries up with the subsidies, it makes your sales base fragile.
And the (i believe) 1500 to 2000 Forterra assembly kits (CKD) they produced for Kemp in Russia, which due to sanctions, came to a halt.

Zetor is also already planning further model series - probably above the model series 6 and the Proxima will probably also have to be replaced

Yes, more investment needed in Proxima replacement, though the Proxima is competitive in its class. Zetor doesnt offer a range powershift in the compact 100-120hp class, though this is a high-spec addition, not a replacement for the current offerings, if you compare it with the competition. I think theyre burning money when cancelling the Proxima and developing a similar speced replacement

after that, gearboxes will presumably only be assembled from parts supplied from elsewhere

That sounds different than what was said before. This could also mean outsourced production of individual parts of Zetor designs. Anyways, we will have to wait and see what happens, the water is too muddy to see where this is going.)

The fact is:

• Zetor is only "big" with around 100 employees in Brno
• engine and transmission production will end in September 2024
• the old production hall is to be demolished. There is talk of 50% of the production facilities.
• What remains is development, assembly, sales and marketing for tractors for the EU and US markets.
• that the previous main owner, billionaire Martin Blaškovič, has been looking for an investor since 2023 - which certainly doesn't bode well if a billionaire can't do it alone.

Banks are willing to invest if the company turns a profit, has collateral, and has a future perspective, which it seems, all three are foregone. To find an investor under these circumstances, it would take someone with guts and vision to invest in an asset stripped company. Someone who clearly isnt going to allow Blaskovic to get in his way. Selling 50% is an utopia, a future investor would not take less than 51%, or a signed contract that he gets full authority over the company, despite buying a minority share. To save the company, not just employment must be sacrificed, the owners will have to make some personal sacrifices as well, or the ship sinks within a few years.

I see fewer problems with the new models from 2025 ("Series 6", Forterra/Crystal successor), as the important components (engine, transmission, axles) will come from well-known manufacturers such as Deutz, ZF-Getriebewerk (Germany) and Carraro (Italy).

Dont cheer too early. Renault used Deere engines and MF rear ends, proven reliable technology. Yet still, Claas recalled the first Renault designed tractors painted green and white because of serious electrical issues that they didnt want under their brand name. Its good that Zetor does extensive testing on these units, because building a good reliable tractor certainly comprises of more than just slapping quality parts together. Zetor seems to handle that well, though it definately hurts sales of the current Forterra, some potential customers will now wait for its successor..

But one thing can be said with certainty: Zetor is probably in its biggest crisis since its founding and one can only hope that they can turn things around and get going again with a changed market strategy.

Ive been predicting that this was going to happen for 10 years, that dealers would save their own hide and abandon Zetor if they couldnt offer their customers a full range of tractors (which allowed competing dealers near their customers), untill there was no one to sell Zetors products. At that time i was part of a company that had slipped away and eventually discontinued, and i saw Zetor being on the same trajectory.

Now that this is finally in the heads of the managers, i dont risk making any predictions on the outcome. Sure it is hard, some company rules need to be broken, its death or glory....maybe the management CAN reinvent itself under high pressure... Glory to the brave !