CNH INDUSTRIAL PLANS IVECO SPIN-OFF

Photography by: courtesy Iveco Europe


IN ANNOUNCING a five-year plan to see commercial vehicles and powertrain listed, CNH Industrial’s new Transform 2 Win strategy will see Iveco become a separately listed entity, it was announced recently.

CNH INDUSTRIAL PLANS IVECO SPIN-OFF
“The bold plan will lead to the creation of two new global leaders in their respective fields,” CNH Industrial chair Suzanne Heywood said.

The industrial conglomerate plans to split its ‘On-Highway’ and ‘Off-Highway’ assets by early 2021 on shareholder agreement.

According to CNH Industrial, separation of ‘On-Highway’ (commercial vehicles and powertrain segments) and ‘Off-Highway’ assets (agriculture, construction and specialty segments) will result in "…each a world leader in its business."

The move follows, "a deep portfolio review process, taking into account, among other things, strategic, investor, and synergy considerations".

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"The bold plan will lead to the creation of two new global leaders in their respective fields," CNH Industrial chair Suzanne Heywood said.

"The board of directors strongly supports this ambitious strategy and its confidence is underpinned by the rigorous work undertaken to formulate it."

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BUS STATUS

On-Highway will comprise the Iveco, Iveco Bus and Heuliez Bus commercial vehicle brands, making up 69 per cent of revenue, together with the FPT Industrial powertrain business at 31 per cent of revenue.

Iveco brands’ market position and product line-up will gain investments in product and technology upgrades, it’s claimed.

FPT Industrial will continue to produce powertrain solutions and accelerate the development of alternative propulsion solutions. It will remain a key supplier to the Off-Highway business through a long-term supply agreement.

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EMBRACING THE CHALLENGE

"With our Transform 2 Win strategy we are setting an exciting new direction for our company," CEO Hubertus Mühlhäuser said.

"By developing ambitious yet achievable targets for each segment and reorganizing our structure to create two global leaders, all of our great businesses will be better able to realize their full potential in terms of financial performance, shareholder and broader stakeholder value generation and sustainability commitments.

"Our clear assessment of the key megatrends, that are rapidly changing the business landscape, has led us to embrace this challenge and transform the company.

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"Benefiting from greater management focus, the two companies will accelerate their innovation, be nimbler in their strategic thinking and actively participate in industry consolidation.

"This is all thoroughly consistent with our strategic purpose of ‘powering sustainable transformation’," said Mühlhäuser.

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