CNH Industrial, the new entity created from the merger of Fiat Industrial and CNH Global, began trading on the New York Stock Exchange this week. The company includes CNH’s agricultural and construction equipment operations along with Iveco trucks, commercial and specialty vehicles and FPT Industrial powertrain applications. Group revenues in 2012 totaled €26 billion (about U.S. $35.3 billion) in revenue with a trading profit of more than €2 billion.
CNH Industrial encompasses 12 brands, 64 manufacturing plants, 49 research and development centers, a workforce of more than 68,000 people and about 6,000 dealers.
“The significance of this new group goes well beyond the technical aspects,” said CNH Industrial chairman Sergio Marchionne. “It meets the objectives of simplification, as well as growth, autonomy and efficiency. It unleashes the potential that comes from operating as a fully integrated multinational group and ensures we are capable of competing at the very top of the capital goods sector and attracting international investors. The group will have the flexibility to pursue the most advantageous strategic options and capitalize on opportunities for growth and consolidation consistent with our ambitions for it to become a leader in the sector. CND Industrial is an enterprise with a strong trajectory.”
CNH Industrial will be headquartered in The Netherlands and managed from offices in Chicago. According to the Wall Street Journal, CNH Industrial will be the world’s second-largest seller of farm machinery behind Deere & Co., the fifth-largest commercial truck maker in the world and sixth-largest seller of construction machinery.