Allis Chalmers and deutz

Why did deutz basically destroy Allis Chalmers ?

Theres a POLITICS section on this website for a REASON!!!

I suppose Rumley fans could have asked the same question about Allis Chalmers.

Deutz owned 20% of Steiger, and had planned to have Steiger build a row crop tractor, using Deutz engines. Deutz really got blindsided when CaseIH acquired the outstanding shares of Steiger, and they had no plan B. At least this is the story I heard. The other thing they had going against them is, I don't think they understood the market they were buying into. Plus you have to think like a German, Allis failed, so therefore their products must be inferior, so why would Deutz want to sell them?

If they woulda put a Deutz engine in the AC tractors of the time it may have worked out .

terrible management. a-c was behind the 8-ball clear back to the 190, with it's weak rearend, terrible brakes etc.etc. research and development must have been on vacation to long, at a time where quality,durability was really needed at a time when john deere had the 4000 series tractors to compete against.  i'm not sure what happened from there as the 7000,8000 series tractors where pretty stout, i don't clearly understand 100% either. quote me if i'm wrong, just my opinion though. pete

http://www.toytractorshow.com/2wd_steiger.htm

soybreedingboy77 wrote: I have heard that Deutz did not know that the 8000 series tractor patents did not come with the at division. They had been sold to John Deere out from under the noses of the Deutz Brass. However, when they found out it was either to late or they did not care that much because they planned on using the German built Deutz but ran into price problems.

That's not true.  Deutz thought they could build a tractor in KC using drivetrains purchased from ZF and their air-cooled engines.  Turned out they (the drivetrains) were too expensive.

ncrc5315 wrote: Deutz owned 20% of Steiger

Hadn't heard that before.

Steiger used the AC 2sp drop box on some models is what I've read on AgTalk.

First, Steiger used some "package" final drives West Allis designed and built along with the drop boxes from the 4w-305.  The engineering manager at Steiger and I were friends from our mutual days and employment at White.  He also had grown up with Allis tractors.  And there weren't a lot of other sources for HD final drives with adjustable wheel tread axles.

Second, the initial headquarters at West Allis was just a matter of convenience.  That's where all the accounting and sales management were, along with Roy Ulner who Deutz hired to be the "American" manager of Deutz-Allis.

Third, Allis-Chalmers was basically being run by the banks that Allis owed money to.  The CEO was just doing what they told him to do so he could keep his job and benefits a little longer.  The money from Deutz for the ag operation just reduced the exposure the banks had.


Edited by 427435 - 09 May 2012 at 2:27pm

Allis Chalmers Destroyed itself, it was a top notch product but could not make money.  

Was the Harvey plant really outdated?  Deere and IH had good success with their in house engines, had they modernized earlier or something? 

Harvey Volume - or lack of it increased per unit cost.  Deere had overseas engine plants to source from  (france - germany) to hold down costs plus their  ^ sales. .

IH considered "merging" with AC in the early 1980s but the allis farm line was not the main interest it was AC industrial division