CNH Industrial changes for the future

CNH Industrial, one of the world’s largest capital-goods companies, announced this week that it is laying the foundation for accelerated global growth and profitability by changing its organisational structure and strengthening and focusing its Global Executive Committee (GEC).

The GEC is the operational decision-making body of CNH Industrial. It is responsible for reviewing the operating performance of the segments and making decisions on certain operational matters.

This means that the way the company is structured will be significantly simplified. It will strengthen its five global segments, which will be supported by streamlined global functions.

The former regional structure will be largely absorbed into these operating segments in order to bring the businesses closer to their customers and accelerate decision-making processes.

Each of these is significant to the South African market.

The commercial and specialty vehicle segment includes the Iveco brand (commercial), Iveco Bus and Heuliez Bus (bus and coach), Iveco Astra (off-road and quarry), Magirus (firefighting) and the Iveco Defence Vehicles brand.

This segment will be led by Gerrit Marx, who has recently joined CNH Industrial. Marx has a strong automotive background, including commercial vehicles. He has experience at both Daimler Trucks and Volkswagen in different world regions.

The agricultural segment comprises the brands Case IH and New Holland Agriculture (as well as the regional brand Steyr). It will be led by Derek Neilson, who was the former COO of the EMEA region.

The construction segment comprises the Case Construction Equipment and New Holland Construction brands and will continue to be led by Carl Gustaf Göransson, who has been responsible for this segment since 2016.

The powertrain segment focuses on the FPT Industrial brand, which produces powertrains, axles and transmissions. It will continue to be led by Annalisa Stupenengo, who assumed this role in 2015.

Finally, Iveco Financial Services is a global player in the financial services, agricultural, construction equipment and commercial vehicle industries. It will continue to be led by Oddone Incisa, who assumed this role in 2013.

Going forward, the corporate functions will focus on core company tasks, including functional strategies, controls, systems and processes, reducing overheads and enabling faster decision-making, while guaranteeing the adequate checks and balances in the organisation.

At the same time, resources and funding have been reallocated, allowing the company to accelerate its activities in the areas of automation, vehicle electrification, digitisation and servitisation.

“While our continued strong year-on-year performance points to numerous areas of excellence, we have also identified opportunities for improvement,” notes Hubertus Mühlhäuser, CEO at CNH Industrial.

“Our industry is experiencing an ever-accelerating rate of change fuelled by megatrends such as digitisation, automation, electrification and servitisation. Companies need to adapt, change and revitalise themselves continuously in order to meet these business challenges and successfully generate long-term value,” says Mühlhäuser