CNH has announced it has ended construction equipment sales in China. The $88 million market was closed as part of CNH's "ongoing turnaround plan for its global construction business."
From CNH:
"CNH Industrial announces that effective December 31, 2022, it will cease all Construction Equipment sales activities in China. In the course of 2021, sales of construction equipment in China totaled approximately $88 million, and CNH Industrial does not expect to incur significant charges in connection with the cessation of its construction equipment sales activities in China.
This decision is part of the company’s ongoing turnaround plan for its global construction business.
The company remains fully committed to its customers and dealers in China and will continue to support the existing fleet of CASE Construction machines.
All other existing CNH Industrial activities in the country will not be affected by this decision and will continue without any change."
During a presentation of its five-year strategic goals back in 2019, CNH said it planned to:
- Focus on attractive products and markets
- Deliver turnaround and earn right grow
- Leverage channel synergies with agriculture segment
There was no mention at the time, however, of reducing markets around the globe.
In December, the company did make an announcement regarding its electrification goals.
CNH has opened a new technical center in Detroit to support the company’s existing electrification site in San Matteo, Modena, Italy. The two sites will focus on alternative propulsion.
“This new location underlines our commitment to growing our electric vehicle and subsystem profile, and marks yet another milestone after successfully expanding our in-house team,” said Marc Kermisch, chief digital and information officer and ad interim chief technology and quality officer, CNH Industrial. “Under one roof our team can now leverage cross-functional and cross-sector expertise at both component and machine level. The result sees us becoming more customer-focused and building mission-fit electrified drivetrains and high voltage systems.”
