At least down here in Brazil there was never any company which has actually carried on after such changes. Usually they HAVE to say and publish that, so to calm down investors and not struggle so much to keep the cash flowing. Mostly because what might really matter is to show the branch all around and say "hey, look, we ARE here, alive and kicking!", to keep the value up - even if several investors know that's not true for long.
First of all, which version is true ? The version CeskeTelevize wrote, or what Harmann sent to its dealers ?
Zetor used to have hotels, football fields, etcetera on the premises. A Dutch couple bought a large tract of land to start a camping site, the Dutch TV followed them. So Zetor indeed sold a lot of real estate for which they had no use, and sold off anything thats not core business, or isnt business at all.
So yes, every time Zetor modernises some production facilities, the new lines become more compact than the old ones and are regrouped around the main office, so they can sell the real estate furthest away. And they are expanding business in India.
Also, Zetor is investing in a new cab after 25 years (the old cab was first introduced on the 1997 Super series) you dont do that when you are afraid that you go broke.
Outsourcing high energy work such as metal casting isnt a bad idea, because European green politicians actively promote the steel industry to leave for India or China with their carbon tax.
Gearbox castings need 6 months to weather before you can machine them anyways, they might as well spend that aging time on a ship... then after two months at sea, you can magnetically test them for defects before stacking them in the rain and sun to weather on. Due to the aging/weathering required, it is also the least risky step to outsource from a supply line point of view because there is plenty of time to reject a batch without causing supply issues.
Just, having 2700 tractors a year, in four series and maybe 20 models with a dozen options, meaning 150 varieties, with technology 50 years beyond their familiarity, built in India, is sure going to bankrupt you on the warranty claims.
I really doubt mr. Harmann really said that, because every idiot knows its crazy impossible.
Sonalika is trying to penetrate the European and American market, but they have been a long time underway, and yet they still have to prove themself to professional users: So far i only see Solis tractors 20 to 40hp with a horse arena drag or a pasture drag, here in the Netherlands: VST is building similar to what Sonalika sells here: Simple Mitsubishi licenses, they are 50 years of technological development away from building a European spec farm tractor with all the electronics. Oh, and Sonalika is using a Carraro 12/12 gearbox in their 90hp model, thats hardly comparable to producing entire Forterras in India...
I mean, John Deere wanted to buy Zetor because Czechia was a low cost country... they have factories around the globe, with their premium models being made in high cost (and high skill technicians) countries like USA and Germany, while each country produces the level of technology that local customers are buying. Mexican tractors are sold in the US as economy models, Indian tractors are sold in the US as hobby tractors.
So, it wouldnt hurt if Zetor had metal casting outsourced to India, maybe even old UR1 transmissions that VST would make for the local market which Zetor could put in future Major models. I dont worry about compoments made in India: We dont know where John Deere casts the transmissions for the 6R series made in Germany, either !
However, the selling of all real estate and renting it back, is the part that worries me. I used to work for a company that went bankrupt in 2002 after the management sold the real estate to themself privately. They found out the consequence of their action when the bank didnt want to lend them any money if they didnt have any collateral for the loan, when they wanted to finance production at VOP Sternberk in the Czech Republic...
ct24-ceskatelevize-cz.translate.goog
