March 18, 2004

New Challenger dealer for South Australia

AGCO Australia is pleased to announce William Adams as their new dealer for the Challenger brand of products in South Australia.

The move follows a decision by Cavpower to withdraw from agricultural machinery sales and focus on their Caterpillar earthmoving machinery, truck engine and rental store business.

In a co-operative announcement issued by the three companies, AGCO Australia Director Sales & Marketing for Challenger Products, Mr Gerard Carew said the move was a positive step for continuing to build the strength of the Challenger brand in South Australia.

“We have appreciated the work done by Cavpower to help launch our Challenger range of products, but now must take the brand to the next level with a dealer able to commit necessary resources to be successful in the agricultural machinery market. William Adams have successfully grown their agricultural business in Victoria and Tasmania so this move provides them with further opportunity to build on that success”.

Operating under the banner of “William Adams Ag”, the new dealership will be managed by Mr Richard Lewis, who also oversees the current Victorian and Tasmanian operation. “This is a great opportunity for us to continue our growth strategy and become a major agricultural machinery dealer in the region” Richard said.

“Challenger is the principal brand of our business and we have an excellent working relationship with AGCO. This new territory opportunity provides us with the chance to build on that even further”. William Adams will also be introducing products complimentary to the Challenger range in South Australia including Fella hay tools and Simba cultivation equipment. They will also provide support to the Lexion brand of combine harvesters in the region.

Existing Cavpower agricultural sales representatives John Lindsay and Keith Coventry will make the move to William Adams Ag to ensure continuity of coverage and that existing customer relationships are maintained. William Adams will also be appointing a number of third party parts & service dealers throughout the region to ensure adequate product support capabilities are in place from day one.

“We obviously can’t build new branch facilities overnight, but realise we have an immediate responsibility to existing Challenger owners and hence will put this support network in place” Richard said. Customers with new Challenger machines still under warranty will be fully supported with warranty service from William Adams and their representatives.

Cavpower Managing Director, Mr Alistair Cavill endorsed the appointment of William Adams as the new Challenger dealer for South Australia and gave his full support to a smooth transition.

“This should not be seen as Cavpower walking away from customers by any stretch” he said. “We remain the Caterpillar dealer for South Australia and our presence in the region will be as strong as ever. Many of our agricultural customers also own Caterpillar earthmoving machines so we expect those relationships to continue.”

Whilst the new Challenger dealer arrangement will be effective immediately, Cavpower will provide support to William Adams as necessary until they are established in the new territory.

“No customer should be adversely affected by this change and we will play our part to ensure that” Alistair said.

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