CNH Industrial, the owner of brands such as Case Construction Equipment, New Holland and Iveco, will split its on- and off-highway assets into separate business entities under a new five-year plan that the company calls Transform 2.
Announcing the plan, CNH said it had done a “deep portfolio review process”, which determined the move as the most suitable way to tackle what the company sees as diverging sectors.
CNH said its review had found that the on-highway and off-highway businesses have regulatory and customer requirements that differed from each other and responded differently to new industry trends such as “digitalisation, automation, low-/zero-emission propulsion and servitisation”.
In 2018, CNH saw both off- and on-highway segments nearly match each other in revenues, with the divisions returning $15.6bn and $13.1bn respectively. Construction equipment contributes around 19% of the off-highway segment’s revenues while 75% comes from the group’s agricultural division.
CNH said its three construction brands – Case, New Holland Construction and Astra quarry trucks – would focus on “improving profitability, product range simplification and growing share in application specific segments”.