CNH Industrial will separate its “On-Highway” and “Off-Highway” businesses. The company says the spin-off of the “On-Highway” assets will better meet respective business needs and optimize the cost and capital structure of each company. The “On-Highway” company will also comprise the IVECO, IVECO BUS, and Heuliez Bus commercial vehicle brands (69 percent of revenue), together with the FPT Industrial powertrain business (31 percent of revenue).
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The “Off-Highway” company will include Case Construction Equipment as well as agriculture products. This segment had 2018 pro-forma industrial activities revenues of $15.6 billion. Specialty vehicles (six percent of revenue) will also remain within the “Off-Highway” company.
The split is part of CNH’s five-year 2020-2024 business plan called “Transform 2 Win,” which the company says will empower its five operating segments. Net sales are also projected to grow at a compound annual growth rate of 5 percent under this plan.
Source: CNH Industrial