Agco issues statement following TAFE filing contempt petition

Tractors and Farm Equipment, or TAFE, announced that it has filed a contempt petition against Agco for violating an interim status quo order from the Commercial Court in Chennai by attempting to terminate TAFE’s right to use the Massey Ferguson brand in India. TAFE’s case regarding its ownership of the Massey Ferguson brand is ongoing in the Madras High Court. In connection with the legal action against Agco, TAFE issued the following statement: “Since our inception in 1960, TAFE has produced, built, and nurtured the Massey Ferguson brand, which today offers a wide product portfolio of more than 500 models in India on the back of strong, indigenous research and development and quality control. We produce more than 100,000 Massey Ferguson tractors in India each year and serve in excess of three million customers. TAFE and Massey Ferguson are synonymous in India. TAFE is the second-largest producer of tractors in India and the third-largest producer in the world, having established a reputation for reliable quality, which has helped us win the trust of farmers in India and in over 80 international markets. A strong distribution network of more than 2,000 dealers supports TAFE’s four iconic tractor brands – Massey Ferguson, TAFE, Eicher Tractors, and IMT. We have earned innumerable accolades for performance and parts supply from customers, industry bodies, media, and governments, including winning international recognition for quality and customer satisfaction. TAFE’s products are India-centric in design, are distinctly different from AGCO’s products, and are ideally suited for small and medium-sized farmers in India and across the world. Our ownership of the Massey Ferguson brand is evidenced by the fact that for the last six decades, AGCO’s global brand website made no mention of Massey Ferguson in the context of India, Nepal, and Bhutan, with the Company having ceded the entire territory to TAFE since our takeover of Massey Ferguson India in 1960. Prior to this year, we have enjoyed a successful, long-standing partnership with AGCO. We acquired a shareholding in AGCO in 2012 and have grown to become the Company’s single-largest shareholder with a long-term, strategic focus, thus strengthening the collaborative relationship between our companies. For more than a decade, we have signed ‘Letter Agreements’ that have assured AGCO of our steady support. Unfortunately, AGCO has ignored issues that we have repeatedly called attention to, including flaws regarding the Company’s governance, wholly inadequate engagement with shareholders, and financial and operational underperformance in key areas. Rather than address these matters, AGCO has instead sought to stifle TAFE’s ability to seek changes through contentious and ill-advised moves with respect to brand usage – an area that has been uncontested and resulted in a fruitful partnership for nearly 65 years.”