Deere loses to owners (Right to Repair)

6,913 Views | 54 Replies | Last: 1 mo ago by G. hirsutum Ag
Over_ed
How long do you want to ignore this user?
AG
"Because of the moat erected around Deere's repair services, Deere and its authorized dealers can charge supracompetitive prices for repair services and also reap the benefit of the unlawfully restrained repair market for the benefit of their lucrative repair-part business." (from the agreement)

Basically the same as your being forced to go to the car dealer for everything that goes wrong with your car as long as you own it.

Deere just settled, $99M to owners for the overcharges (refunding up to 50%) and Deere has to provide the digital tools for the diagnosis and repair of its machinery.

https://www.thedrive.com/news/john-deere-to-pay-99-million-in-monumental-right-to-repair-settlement

When we buy a product it should be our property. Great to see pushback against the "you will own nothing and be happy" crowd. World Economic Forum (2016)

nortex97
How long do you want to ignore this user?
AG
Excellent. For some reason Deere decided to go full 'new coke' and burn their longstanding trust with customers over the past 10+ years, which has shocked me. Not a farmer, but I've heard/read nothing but frustration about them for some time.
TxSquarebody
How long do you want to ignore this user?
Two things will shut a machine down; catastrophic mechanical failure and emissions. Guess which one requires a laptop and proprietary software to repair. So dumb.
Kenneth_2003
How long do you want to ignore this user?
AG
My understanding (not a farmer/Deere owner) is/was that it was even more draconian than EPA compliance.

Bolt on parts (think a replacement alternator) had to be digitally tied to the ECU via Deere specific and tightly controlled software. Anything that requires accessing the ECU was solely controlled by Deere. There was no such thing as a Deere authorized or trained mechanic or service tech. There were ONLY Deere owned service centers (at the dealer) and Deere mechanics (again at the dealer).

Annoying when your tractor breaks down while shredding a grazing pasture. Potentially catastrophic when you've got a harvest window and it now requires flatbedding or lowboying a permit load back to the dealership.
Over_ed
How long do you want to ignore this user?
AG
Kenneth_2003 said:

My understanding (not a farmer/Deere owner) is/was that it was even more draconian than EPA compliance.

Bolt on parts (think a replacement alternator) had to be digitally tied to the ECU via Deere specific and tightly controlled software. Anything that requires accessing the ECU was solely controlled by Deere. There was no such thing as a Deere authorized or trained mechanic or service tech. There were ONLY Deere owned service centers (at the dealer) and Deere mechanics (again at the dealer).

Annoying when your tractor breaks down while shredding a grazing pasture. Potentially catastrophic when you've got a harvest window and it now requires flatbedding or lowboying a permit load back to the dealership.

Exactly. In the end many owners resorted to trying to hack their own equipment. Then Deere wanted to recover damages for the owners hacking their own tractors/combines. It is a weird world we live in.
MemphisAg1
How long do you want to ignore this user?
AG
I followed that case as it surfaced years ago and deliberately avoided Deere when I bought a Kubota for my place in the country. Who needs to be treated like that by a supplier? Not me.
ttu_85
How long do you want to ignore this user?
To bad the Market was already a monopoly. The customers could have flipped off Deer and gone to a competor as true capitalism allows.

Rule by Monopoly and Ologopoly is as bad as socialim and communism, all 4 systems put all the power in the hands a a few people. Humans over time are incapable of doing the ethical thing when a great deal of power is given to so few.
Burdizzo
How long do you want to ignore this user?
AG
The dealers are still independent in name, but they are exclusively tied to Deere.

Back in the day, the local dealer was locally owned. My family had a personal relationship with the family that owned the Deere dealership. The dealers were not exclusively Deere either. Their used tractor lots often had red, blue, and orange tractors, and the implements were from various manufacturers. Somewhere in the 80s that began to change . The family owned dealerships closed and were replaced with regional chains that were exclusive to Deere. No more used tractors of other brands. No more repping other implement manufacturers. They were Deere and Deere only. And the service went to crap b cause the next town over had the same regional company running their Deere dealer too. Last couple of times I went in a Tellus dealer, the parts guys were slow, clueless, and generally unhelpful.

You pay a premium for the Green Paint, and then y the after sales support is unaffordable and the quality of the crap you buy from Amazon. No thanks
TxSquarebody
How long do you want to ignore this user?
A global brand trying to support a network of dealers in a dying market. Easy to understand the strategy. As always, the problem was getting greedy. If the cost had been kept in check, very few would have been upset. Death rattle intensifies.
Kenneth_2003
How long do you want to ignore this user?
AG
I could be wrong here.... I think the "monopoly" is somewhat regional. A lot of farmers (and to a lesser extent ranchers with smaller tractors) are logistically bound to the local dealer.

It's one thing to winch a 50hp unit onto your gooseneck trailer. It's quite another to get a combine or one of the modern units used in plowing/planting back to the mechanic (or a mobile mechanic to the field). If the guy in town or the next town over is a Deere shop vs 100 miles to the nearest CASE dealer... Good change your equipment will be green.
ttu_85
How long do you want to ignore this user?
Over_ed said:

Kenneth_2003 said:

My understanding (not a farmer/Deere owner) is/was that it was even more draconian than EPA compliance.

Bolt on parts (think a replacement alternator) had to be digitally tied to the ECU via Deere specific and tightly controlled software. Anything that requires accessing the ECU was solely controlled by Deere. There was no such thing as a Deere authorized or trained mechanic or service tech. There were ONLY Deere owned service centers (at the dealer) and Deere mechanics (again at the dealer).

Annoying when your tractor breaks down while shredding a grazing pasture. Potentially catastrophic when you've got a harvest window and it now requires flatbedding or lowboying a permit load back to the dealership.

Exactly. In the end many owners resorted to trying to hack their own equipment. Then Deere wanted to recover damages for the owners hacking their own tractors/combines. It is a weird world we live in.

This is a terrible case.

Maybe some Deer execs need to go to prison. The only way they could hack that would be to buy <M>icro <C>ontoller <U>nits or MCUs of the same type and flash- code, compile, and upload, them. Getting open source code and twiking it would be possible but not easy at all. Good news the MCU's are cheap.

Maybe this is how to beat these aholes. Maybe a big market for this will open up for this approach for all kinds of things. Use real capitalism to bust corrupt monoplies. And crush them if they even try to take people to court.

But then the lawyers and big money ruin the party. We need fundamental law reform or we are going to endup with an even worse commie or solicalistic system.
Kenneth_2003
How long do you want to ignore this user?
AG
How much of that was top down from Deere and how much of it was kids that didn't want to take over the family tractor dealership when they moved off the city resulting in a sale and the only buyers are the mega-corps? I'm guessing is a healthy mix of both?

See similar happening as all of the car dealerships are giant mega-corps rather than the family owned arrangement.
jwhaby
How long do you want to ignore this user?
Kenneth_2003 said:

I could be wrong here.... I think the "monopoly" is somewhat regional. A lot of farmers (and to a lesser extent ranchers with smaller tractors) are logistically bound to the local dealer.

It's one thing to winch a 50hp unit onto your gooseneck trailer. It's quite another to get a combine or one of the modern units used in plowing/planting back to the mechanic (or a mobile mechanic to the field). If the guy in town or the next town over is a Deere shop vs 100 miles to the nearest CASE dealer... Good change your equipment will be green.


That's why we always ran Deere. They had the closest dealer, so if you broke down it was easier and quicker to get parts and services. My dad retired from farming a decade ago, so he didn't have to go through this bull**** with Deere. I'm glad. Farming is hard enough.
ttu_85
How long do you want to ignore this user?
Kenneth_2003 said:

How much of that was top down from Deere and how much of it was kids that didn't want to take over the family tractor dealership when they moved off the city resulting in a sale and the only buyers are the mega-corps? I'm guessing is a healthy mix of both?

See similar happening as all of the car dealerships are giant mega-corps rather than the family owned arrangement.

We used to have anti trust laws to prevent this stuff, Sherman Anti-trust laws. Where F* are they? Oh ignored by todays politicians. It doest take much imigination to know why freshman crongressman are millionaires after just one term in an office that pays 175K p/y.

Another thing that might help- is for people to stop believing everything they hear on a pod cast or see on fox or cnn. Can you imagine a startup trying to take this on and how big media backed by big corps, would then paint said start-up as the next Yugo.
No Spin Ag
How long do you want to ignore this user?
Over_ed said:

"Because of the moat erected around Deere's repair services, Deere and its authorized dealers can charge supracompetitive prices for repair services and also reap the benefit of the unlawfully restrained repair market for the benefit of their lucrative repair-part business." (from the agreement)

Basically the same as your being forced to go to the car dealer for everything that goes wrong with your car as long as you own it.

Deere just settled, $99M to owners for the overcharges (refunding up to 50%) and Deere has to provide the digital tools for the diagnosis and repair of its machinery.

https://www.thedrive.com/news/john-deere-to-pay-99-million-in-monumental-right-to-repair-settlement

When we buy a product it should be our property. Great to see pushback against the "you will own nothing and be happy" crowd. World Economic Forum (2016)




This is a great win for consumers.

Auto companies (BMW comes to mind but I'm sure others are the same) do the same where you have to pay to use, or fix, what you supposedly own when you've paid off the vehicle. Tesla did this in the beginning where you could "unlock" features your car already had in it. Stupid greed.

Hopefully this puts a stop to this idiocy.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
Owlagdad
How long do you want to ignore this user?
Has red or green now become red or orange?
Heavy to orange?
rocky the dog
How long do you want to ignore this user?
AG
Elections are when people find out what politicians stand for, and politicians find out what people will fall for.
No Spin Ag
How long do you want to ignore this user?
rocky the dog said:




Chingao! LOL!!!
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
CS78
How long do you want to ignore this user?
Over_ed said:

When we buy a product it should be our property. Great to see pushback against the "you will own nothing and be happy" crowd. World Economic Forum (2016)


Awesome step in the right direction. Now can we get someone to do property taxes?
CDUB98
How long do you want to ignore this user?
AG
Car companies are doing this on a smaller scale as well.

Learned just a few days ago that if the brake booster on my F150 goes out, the new unit has to be connected to the computer, and guess who the only people are that have the software for that......yup, the dealerships.

I already disliked the electronicly actuated brakes, now I truly loathe them.
agracer
How long do you want to ignore this user?
AG
Car manu. are doing the same thing. Try swapping a 12V battery on a new vehicle these days can be a PITA with some manu.
fcag
How long do you want to ignore this user?
AG
So when can I take my non-working John Deere zero turn to any small engine repair shop and them tell me they can repair it without pointing me to United Ag&Turf that charges an arm and a leg?
Logos Stick
How long do you want to ignore this user?
Not sure I agree. If Deere wants to lock down what they make, just don't buy Deere equipment.
Furlock Bones
How long do you want to ignore this user?
AG
this is great news. more pushback on this BS is needed.
CDUB98
How long do you want to ignore this user?
AG
Logos Stick said:

Not sure I agree. If Deere wants to lock down what they make, just don't buy Deere equipment.


Except, how things have played out, there is not a viable option for many farmers.

The very definition of monopoly.
Waffledynamics
How long do you want to ignore this user?
AG
I know it might be a stretch, but I'd like to see a similar approach to buying licenses/subscriptions vs. buying a product outright.

I shouldn't have to pay a subscription to use flippin' Microsoft Office.
AgNav93
How long do you want to ignore this user?
AG
They lost me as a customer when they did this. And I'm not coming back either. As far as I'm concerned this was as bad as a Bud Light moment for them.
torrid
How long do you want to ignore this user?
AG
Kenneth_2003 said:

My understanding (not a farmer/Deere owner) is/was that it was even more draconian than EPA compliance.

Bolt on parts (think a replacement alternator) had to be digitally tied to the ECU via Deere specific and tightly controlled software. Anything that requires accessing the ECU was solely controlled by Deere. There was no such thing as a Deere authorized or trained mechanic or service tech. There were ONLY Deere owned service centers (at the dealer) and Deere mechanics (again at the dealer).

Annoying when your tractor breaks down while shredding a grazing pasture. Potentially catastrophic when you've got a harvest window and it now requires flatbedding or lowboying a permit load back to the dealership.

I think every switch and relay was on a serial bus and tied to the ECU by a unique MAC address. Replacing literally anything required propriety Deere software to enable it in the ECU.
CheeseSndwch
How long do you want to ignore this user?


It's an older video and I've posted it before but it's worth a watch for anyone interested.
MemphisAg1
How long do you want to ignore this user?
AG
CDUB98 said:

Logos Stick said:

Not sure I agree. If Deere wants to lock down what they make, just don't buy Deere equipment.


Except, how things have played out, there is not a viable option for many farmers.

The very definition of monopoly.

Yep, that's the issue. Similar to how courts have made Apple, Google, etc. provide options to alternative suppliers for supplementary services that are tied to their core platform. You can't abuse your monopoly position to restrict competition.
Burdizzo
How long do you want to ignore this user?
AG
Kenneth_2003 said:

How much of that was top down from Deere and how much of it was kids that didn't want to take over the family tractor dealership when they moved off the city resulting in a sale and the only buyers are the mega-corps? I'm guessing is a healthy mix of both?

See similar happening as all of the car dealerships are giant mega-corps rather than the family owned arrangement.



I think a lot of it came down from Deere. My brother is a farm equipment dealer, not Deere. His suppliers/manufacturers started increasing their minimum sales volumes in order for him to maintain his agreements. He was a small dealer in a shrinking market (Caldwell County), and so his line dropped him. He said when all was said and done, it was actually a relief to get out from under them.

He still reps some small lines and does a lot horse trading with used equipment. Tires, batteries, and hydraulic hoses help keep the lights on, but the ag stuff is fading quickly. Not many farmers left. He is in his 60s now, and will probably cash out and sell the lot with highway frontage. His sons don't want to run what is left of it.
fireinthehole
How long do you want to ignore this user?
I do not think deere is US anymore
You are the world, we are the USA, don't mess with us and we won't blow your $hit away.
TexasRebel
How long do you want to ignore this user?
AG
ttu_85 said:

To bad the Market was already a monopoly. The customers could have flipped off Deer and gone to a competor as true capitalism allows.

Rule by Monopoly and Ologopoly is as bad as socialim and communism, all 4 systems put all the power in the hands a a few people. Humans over time are incapable of doing the ethical thing when a great deal of power is given to so few.


Deere doesn't make anything unique except a paint color.
SWCBonfire
How long do you want to ignore this user?
AG
Burdizzo said:

Kenneth_2003 said:

How much of that was top down from Deere and how much of it was kids that didn't want to take over the family tractor dealership when they moved off the city resulting in a sale and the only buyers are the mega-corps? I'm guessing is a healthy mix of both?

See similar happening as all of the car dealerships are giant mega-corps rather than the family owned arrangement.



I think a lot of it came down from Deere. My brother is a farm equipment dealer, not Deere. His suppliers/manufacturers started increasing their minimum sales volumes in order for him to maintain his agreements. He was a small dealer in a shrinking market (Caldwell County), and so his line dropped him. He said when all was said and done, it was actually a relief to get out from under them.

He still reps some small lines and does a lot horse trading with used equipment. Tires, batteries, and hydraulic hoses help keep the lights on, but the ag stuff is fading quickly. Not many farmers left. He is in his 60s now, and will probably cash out and sell the lot with highway frontage. His sons don't want to run what is left of it.


Seems like this would be as good an opportunity for expansion in North America as any for alternate brands - AGCO, Deutz/SAME, maybe the lower-level Asian co's like LG and Kioti.
Burdizzo
How long do you want to ignore this user?
AG
He got dropped by AGCO about 15 years ago. They had been a dealer for them going all the way back to Oliver, then White, in the 1950s.

It is hard to sell tractors to farmers that don't have any money or that have quit all together. Most of the small hobby farmers left are serviced by Ewald. The market has been consolidating since the 80s.
Page 1 of 2
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.