Recession Survival

Home Introduction Early Deere&Co. 1980s Farm Crises 1980s Struggle U.A.W. Implements Joe Gruman Gary Handke Recession Survival Late 1980s Conclusion Notes

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    Deere & Company looked for new business throughout the recession to help boost their sales. Fortunately, throughout the whole ordeal the lawn and garden machinery continued to profit. Deere became involved in various community programs through their HMO health plan and financial services like Farm Plan that provided insurance to American farmers. HMO was introduced in 1985 to offer a managed health care plan to various communities outside of Deere employees. Farm Plan was introduced in 1984 as a credit service for non-John Deere products. Deere signed a $11 million contract with the military for various machinery in 1985. Also in 1985, Deere made a deal with General Motors to produce four-cylinder engine blocks for them. That same year, Deere began negotiations with Winnebago to produce various parts. Between 1987 and 1988, Deere became involved with the manufacturing of recreational vehicles and parts including boats. Also in 1987, Deere introduced golf and turf equipment onto their product line. In addition, Deere & Company was granted $50 million by the government for research on rotary engines. With these new products and customers, Deere & Company began to see some light at the end of the tunnel, and their overall sales began to increase.

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