CNH Industrial has announced a five-year business plan, called Transform 2 Win, in which its on-highway and off-highway assets will be split into two discrete businesses.
The Netherlands-based multinational said the plan is the result of a “deep portfolio review process”, which identified the move as the best response to what it sees as diverging sectors.
During the announcement, which took place at New York Investor Day in the US, the company said its review had “highlighted that the ‘On-Highway’ and ‘Off-Highway’ businesses have diverging regulatory and customer requirements and are impacted differently by the accelerating industry megatrends of digitalization, automation, low-/zero-emission propulsion and servitization”.
CNH’s 2018 revenues are currently fairly evenly split between off-highway ($15.6 billion (€14.1 billion)) and on-highway ($13.1 billion (€11.9 billion)).
Within the off-highway segment, construction equipment accounts for 19% of revenues. Some 75% of revenues are derived from the group’s agricultural assets.
CNH said the aim for its construction brands – Case Construction Equipment, New Holland Construction and ASTRA quarry trucks – was to focus on “improving profitability, product range simplification and growing share in application specific segments”.