Rebirth as Varity
In 1986, the Government of Canada and the Government of Ontario provided CA$250 million relief on the condition that Massey Ferguson remain in Canada and operate manufacturing in Canada. The company is renamed Varity after an internal process. At one time, the company made the Verity Plow, after its owner William Verity sold his farm equipments firm to Massey-Harris in 1892. However, the company cannot use Verity and modifies its choice to Varity (where the first three letters of the name might refer to Victor A. Rice).[6] The company is restructured into Massey-Ferguson, Perkins Engines and Varity Enterprises. The company has reduced debt to CA$400 million and has annual sales of $1.3 billion and 18,000 employees, a reduction from $3.2 billion and 68,000 employees in 1975.[7] Massey-Ferguson has annual sales of $400 million and remains the world's largest supplier of tractors.[7]
In 1988, the company closed its Massey Ferguson Combines manufacturing facilities in Brantford, Ontario, a facility connected with the operations of A Harris, Son and Company's operations in Brantford. A Harris, Son and Company had merged with Massey Manufacturing in 1891 to form Massey-Harris.[8] In 1986, when Varity restructured, its corporate debt was transferred to Massey Ferguson Combines, and the combines maker closure writes off the debt including its pension obligations.[9]
In 1989, Varity buys a majority interest in automotive parts supplier Fruehauf, the parent of Kelsey-Hayes for US$700 million. The Kelsey-Hayes company has 21 factories: four in Canada, 12 in the U.S. and five in Europe. The company manufactures wheels, wheel-end components and anti-lock braking systems for cars and trucks. Combined, the company has annual sales of $4.2 billion.[9]
Despite its promise to the Canadian governments, in 1991, Rice moved the company to Buffalo, New York, setting up in the Williams-Butler House at 672 Delaware Avenue in the Millionaire Row area of Buffalo.[10] and ceased to be a Canadian corporation.[11]
In 1994, in a deal for US$300 million in cash and $18 million in stock, the farm equipment divisions of Varity were sold to the US-based AGCO Corporation.[12] AGCO continued the Massey Ferguson brand and contracted with Perkins as its engine supplier.[13] Massey Ferguson exists today as a brand name within AGCO Corporation of Duluth, Georgia, USA.[14]
In August 1996, the remaining electrical, brake and diesel engine divisions of Varity merged with Birmingham, England based Lucas Industries (Automotive & Aerospace) to become British-based LucasVarity. Rice became the CEO of the new LucasVarity.
In 1998, following the LucasVarity merger, Perkins Engines was sold to Caterpillar.[15]
In March 1999, LucasVarity was purchased by US automotive company TRW for US$6.53 billion.[16] TRW closed the Buffalo, New York head office.[17] TRW was itself acquired in 2002 becoming TRW Automotive and since 2015 as ZF-TRW, a unit of ZF Friedrichshafen.
Victor Rice, the CEO of Varity and LucasVarity, died on June 5, 2022, in Buffalo, New York.[18] Rice was a British native, and had moved in 1975 to Toronto to join Massey Ferguson's head office as an executive. He and his family moved to Buffalo in 1991 with the relocation of Varity. After the sale to TRW, Rice retired in Buffalo and worked with various business associations and the Olmsted Parks Conservancy.[19]
