CNH Industrial, parent company of Case Construction Equipment and other construction and agricultural brands, and its former commercial vehicle business IVECO began 2022 as separate businesses. On the first business day of the year, January 3, CNH began trading on the New York Stock Exchange (NYSE) in the United States and Borsa Italiana’s Euronext Milan in Italy as a fully focused agriculture and construction player. On the Euronext Milan, trading in shares of Iveco Group N.V. began.
The companies first announced in 2019 a separation of CNH's on- and off-highway businesses. Since that initial announcement company leaders have been working toward establishing new organization structures and long-term priorities for both businesses.
READ MORE: CNH Industrial Introduces New Strategy to Secure Future Growth
Per a press release from CNH regarding the demerger, the decision was made based on diverging regulatory and customer requirements for the on- and off-highway businesses which are impacted differently by the accelerating industry megatrends. The demerger is intended to maximize management focus and flexibility, align investment priorities and incentives, better meet respective business needs, and optimize the cost and capital structure of each company to drive profitable growth, stated CNH in its press release.
"We are excited to usher in the new CNH Industrial, the result of detailed strategic planning, hard work and boundless determination. I want to congratulate our entire team, and our Senior Leadership Team in particular, for driving this to completion and thank the Board of Directors for overseeing this operation to its successful conclusion. As a pure player in agriculture and construction, we will bring our undivided attention to bear on supporting our customers and dealers. This involves developing innovative products and processes to enhance productivity; accelerate profitable growth; and spearhead our ambitious ESG plans to ensure we act in full respect of people and the planet," said Scott W. Wine, Chief Executive Officer, CNH Industrial, in the company's press release announcing start of the divided businesses. "I would also like to wish our former colleagues, and now respected peers, in the newly-formed Iveco Group N.V. every success as they commence independent operations and begin trading on Borsa Italiana’s Euronext."
CNH unveils new structure to grow dedicated off-highway business
CNH has created a new organizational structure aimed to help its now construction and agriculture industry-focused business succeed in these markets. According to the company, key strategic objectives will be aimed at meeting the company's vision of sustainably advancing the noble work of global construction and agricultural workers. Brands under the CNH Industrial umbrella include Case Construction Equipment, New Holland Construction, Case IH, Steyr and New Holland Agriculture,.
"We are implementing a new organizational structure, and enhancing our Senior Leadership Team, to elevate our focus on customers and dealers, improve productivity and accelerate profitable growth,” said Wine in CNH's press release announcing the new organizational structure. "This new structure fosters agility, eliminates unnecessary bureaucracy, and promotes clear accountability as we execute our strategic priorities and create value for our stakeholders."
Various concept alternative energy machines from the various CNH Industrial brands were showcased at its capital market days held at the New York Stock exchange in 2019 where it announced the demerger with Iveco.ACBM staff
- Agriculture - Derek Neilson, President
- Construction - Stefano Pampalone, President
- Financial Services - Oddone Incisa, President
The following businesses and leaders are integrated into the GBUs and are tasked with driving strategic growth:
Corporate Regions
- North America – Brad Crews, President
- Europe, Middle East & Africa – Carlo Alberto Sisto, President
- Latin America – Vilmar Fistarol, President
- Asia Pacific – Chun Woytera, President
Business Functions
- Digital & Precision – Parag Garg, Chief Digital Officer
- Technology & Quality – Jay Iyengar, Chief Technology & Quality Officer
- Supply Chain – Tom Verbaeten, Chief Supply Chain Officer
- CNH Industrial Business System – Scott Moran, Chief CNH Industrial Business System Officer
Iveco builds on legacy while focusing on innovation
The new Iveco company includes the Commercial and Specialty Vehicles, Powertrain and related Financial Services businesses from CNH Industrial N.V. Gerrit Marx has been appointed Chief Executive Officer of the company which encompasses over 170 years of history between its brands. Trucks, buses, firefighting and civil protection vehicles will be among the product portfolio as well as powertrain solutions from the FPT Industrial brand for on- and off-road equipment, marine and power generation.
Iveco says in its press release announcing its first day of trading as a separate company that it will have a strong focus on innovation and the development of advanced and sustainable solutions, including reduced- and zero-emission powertrains, cloud-connected driver assistance systems and the exploration of emerging autonomous driving technologies and entirely new business models. It will do so through various partnerships, such as the one it formed with Nikola.
In total, Iveco is comprised of:
- 8 brands,
- 29 manufacturing plants,
- 31 research and development centers and
- 34,000 people in its workforce.
The company says it will have a presence around the world with a strong base in Europe.
"Our first day of trading marks a historic milestone as we become a fully independent company. I want to thank our Chair, Suzanne Heywood, and our Board of Directors for bringing this spin-off operation to completion and the entire Iveco Group team for taking on the challenge and dedicating extra effort to see it through. We have all the requisites needed for long-term success, including solid foundations, a focused team, and a clear strategy, which will allow us to move quickly, innovating and partnering to create better solutions in today’s fast-changing environment," said Marx in Iveco's press release.
January 3, 2022, marked the start of trading for the newly formed Iveco Group on Italy's stock exchange.Iveco Group
In November, Iveco announced its business strategy and 2026 financial ambitions. Becoming its own business entity will better enable Iveco to capture market opportunities and develop products that will meet customers evolving requirements. Among these will be the need to develop solutions which comply with increasingly stringent emissions regulations.
To help differentiate itself from the previous corporate identity, a new name and logo for the company were announced. Iveco decided to keep the name it started with in 1975—and which stands for Industrial VEhicles COrporation—in honor of its heritage. The new company logo takes a new spin on the look of the name from previous logos, and incorporates the various brands within the group.
Iveco also announced an organizational structure and leadership team which are designed to help the company achieve its business targets. According to a press release on the subject, the Iveco Group structure is designed to be customer-centric, accountable and performance driven. Its delineation stems from the Business Units, which encompass the following businesses with their respective brands:
- Truck (IVECO),
- Bus (IVECO BUS and HEULIEZ),
- Powertrain (FPT Industrial),
- Defence Vehicles & ASTRA, Firefighting (Magirus) and
- Financial Services (IVECO CAPITAL).
"With this structure in place, we are ready to embark on our exciting future. It provides clarity from the start and from the top, placing customer-centricity at its core and setting forth a high- performing team with well-defined roles and accountabilities that mutually complement each other. Its design will generate a positive ripple effect down to the further layers of the organization, driving our sharp focus on key business goals and identifying the best means for serving our customers, cooperating with our partners and rewarding our shareholders," said Marx in the company's press release.
