I pose this question to anyone who won't feed back BS. Who will build for model year 2006? I am of the opinion a lot of it will be done by MTD, but I'm not sure. GOOD feedback on this would be appreciated. Thanks.
wong; you are right on regarding MTD regarding delivery/capacity issues. I understand one of the main reasons they lost ground to Deere at Lowe's was due to delivery issues. It will be interesting to see if they fare any better at Depot; Deere has a superior delivery/logistics system than MTD. Neither Lowes or Depot has much tolerance for missed sales due to lack of tractors on-hand.
dol, last I heard was that Home Depot was considering Murray, but I would be surprised if that actually comes to pass as MTD would fight that pretty hard to guard their Yard Machine turf. MTD has more leverage this year at Depot as Cub Cadet will likely replace some Deere skus. Sears is probably out as they will be receiving both entry level/premium model lines from Electrolux. Without Wal-Mart Murray may be resolved to smaller regional based box stores or sitting out 2006 all-together.
<<The sooner they get out of that business the better. Whoever fills the gap will have to have engines and Briggs can make money on them.>>
Typical naive belief that Brigg's is invincible because of their line of brand name engines. MTD is already doing power point presentations on their Chinese engine and they expect to roll it out in 2007. Yes, coming to a Walmart near you.
jim There are only 2 realistic possibilities: Electrolux or MTD
I don't believe MTD has the capacity to put out an additional 200K+ units per year on short notice, nor do they have the financial strength to win a bottom feeding contest with Electrolux.
Electrolux will likely be building the vast majority of the Murray tractors and walk behinds for BS. They have the capacity and the additional volume is incremental which will allow them to hit the price points necessary. They are very good at slapping a new color and another set of decals onto their standard model to create yet another private label. In addition they will low ball the business if necessary just to keep it out of MTD.
BS may throw MTD a bone to keep the peace, but I believe EHP has already won the business.
Your assessment of MTD's capacity is fairly accurate. However ECOP has not been given much, if any, of the Murray lawn business (tractors and walk behinds)as of yet. BGG and ECOP did not come to terms on their first go around, but nothing has been finalized. Look for the Murray line to be scattered among several known and unknown players, if there is a Murray line.
Why would eiher company really care to produce the brand? Isn't there a valid argument to both of them turning down the business in hopes of obtaining the business under one of their current brands/products? Maybe this is why nothing has been announced as to the direction of BGG Murray acquisition?