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Deutz Look Alike Sells For 30% Less
"It's creating some tough competition for Deutz dealers,"says Roger Smith, spokesman for IMG of Nashville, Tenn., distributors of a new Deutz "look alike" tractor from West Germany.
Memo tractors are actually built in Yugoslavia in a plant that made tractors and parts for Deutz until that company took over the tractor-building facilities of Allis Chalmers. Now the tractors are being sold in the U.S. and throughout the world under the Memo trademark. According to Smith, the only difference between Memo and Deutz is the price. Memo tractors sell for at least 30% less and parts for fully 50% of prices charged by Deutz.
"At first Deutz encouraged their dealers to take on Memo franchises so they wouldn't have to compete with them. When dealers started selling more Memo tractors and parts than Deutz, however, they discouraged their dealers from selling Memos. Nevertheless, more than half the Deutz dealers in Texas have already signed up with Memo," says Smith.
The Memo tractor line-up matches the Deutz line-up of tractors up through 170 hp. as manufactured before Deutz merged with Allis Chalmers. Since the merger of the two companies, Deutz has added Allis Chalmers parts to their tractors and changed them in other ways. A 45 hp. Memo equipped with a loader, which Smith says is the same as a 4506 Deutz, sells for $9,500. A 73 hp. model that Deutz sells in the $22,000 range sells for $15,500. Most Deutz and Bosch parts, which Memo also makes, sell for about half-price, according to Smith.
For more information, contact: FARM SHOW Followup, Memo Tractors,1950 E. Continental Blvd., South Lake, Tex. 76092 (ph 817 481-6577).

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1987 - Volume #11, Issue #2