Tractors will become more expensive - The price of components up to 100 times higher?

"Early bird offers" from agricultural machinery manufacturers commence in August and September. However, this year the production of agricultural mechanization is accompanied by problems in supply chains and the availability of components, which Fendt from the German city of Marktoberdorf is also struggling with - the Frankfurter Allgemeine Zeitung reports.

The Vice President and Chairman of the Board, Christoph Groblingoff, advised that tractors and agricultural machinery will get even more expensive.

The dominant problem is the lack of components for production. Groblingoff states that demand is high - globally 15 to 20% higher than before the COVID outbreak.

- We have problems in supply chains, that is what burdens us the most - he emphasized.

Production is under immense pressure due to the lack of chips and semiconductors. Apart from the fact that they are difficult to obtain, the components have become up to 100 times more expensive. The price of chips, which before the COVID pandemic, costed only 14 euros, today reach a dizzying 1,400 euros. This has resulted in more expensive tractors, combines and other attachment machines with prices increased by 15-20%.

The most expensive best-selling tractor

The best-selling tractor in Germany is the Fendt 724 Vario, and the basic model is offered in 2022 with a list price of EUR 246,000. With a price increase of 10-15%, its price could be increased by additional EUR 37,000.

The most important sales markets for this brand are Germany with around 30% and France with over 19%. The assumption is that by the end of 2022, the company will produce 21,500 tractors unless there are dramatic upheavals in the market.

Fendt

Christoph Groblingoff

tractors

prices

price increase

components

supply

Fendt 724 Vario