CNH Industrial N.V. (CNH) operates as an equipment and services company.
The company engages in the design, production, marketing, sale, and financing of agricultural and construction equipment. CNH's global network includes industrial, commercial and financial services subsidiaries located in 31 countries and a commercial presence in approximately 167 countries.
The company’s geographic regions are North America (the United States, Canada and Mexico); Europe, the Middle East and Africa (membe...
CNH Industrial N.V. (CNH) operates as an equipment and services company.
The company engages in the design, production, marketing, sale, and financing of agricultural and construction equipment. CNH's global network includes industrial, commercial and financial services subsidiaries located in 31 countries and a commercial presence in approximately 167 countries.
The company’s geographic regions are North America (the United States, Canada and Mexico); Europe, the Middle East and Africa (member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans, Russia, Turkey, Uzbekistan, Pakistan, the African continent and the Middle East); South America (Central and South America, and the Caribbean Islands); and the Asia Pacific (Continental Asia (including the India subcontinent), Indonesia, and Oceania).
Segments
The company operates through three segments: Agriculture, Construction and Financial Services.
Agriculture segment
The segment designs, engineers, manufactures, distributes and services a full line of agriculture equipment, implements and precision agriculture solutions. The segment also supports customers throughout the equipment lifecycle with aftermarket solutions including guidance, automated steering systems, and application control products across a full line of equipment. The company seeks to ensure that its customers have technology options at every stage of their precision tech adoption journey.
Agriculture's product lines include tractors, combine harvesters, hay and forage equipment, seeding and planting equipment, and self-propelled sprayers.
Case IH and New Holland are the company’s two leading global brands. The company’s regional and technology brands cater to specific regions around the world. They operate closely with customers to provide specialist solutions.
The company’s primary brands and products for the agriculture segment are as follows:
Case IH
The company’s Case IH brand specializes in powerful and productive machinery including track technology and precision farming solutions for cash and high-value crops, such as sugarcane, particularly for larger farms. Products sold through the company’s Case IH brand include tractors, harvesters (grain and sugarcane) and crop protection and tillage precision farming solutions.
New Holland
New Holland specializes in combine harvesting and offers a broad range of equipment that caters to specialty applications, hay and forage, livestock, vineyards and orchards, as well as methane power solutions. Products sold through the company’s New Holland brand include tractors, harvesters (grain and specialty crops such as grapes and olives), hay and forage equipment, crop protection and tillage solutions (primarily for small grains) and precision farming solutions.
STEYR
STEYR is a regional brand, primarily focused on European markets, that specializes in small- to mid-sized tractors for agricultural, municipal and forestry segments.
Raven
Raven is a global technology brand primarily focused on developing disruptive agricultural technologies that seek to solve in-field challenges and provide automated and autonomous farming solutions.
New and emerging technologies are transforming the industries the company serves. CNH is investing in integrated solutions and precision technologies across its equipment portfolio, including digital platforms, global navigation satellite system (‘GNSS’) positioning, connectivity, displays, automation, and autonomy.
CNH’s core technologies were strengthened by acquiring Raven Industries, Inc., (‘Raven’) in 2021 and Hemisphere GNSS (‘Hemisphere’) in 2023. These acquisitions allow CNH to design, manufacture, sell, and service core technology products, providing precise GNSS solutions for agriculture and construction.
In 2023, CNH acquired Augmenta Holding SAS (‘Augmenta’), a machine vision company that automates and optimizes farming operations using real-time, multi-spectral sensors and agronomic insights.
Construction segment
The Construction segment designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders along with a wide variety of attachments.
Construction’s product lines are sold primarily under the global CASE Construction Equipment (‘CASE’) and New Holland Construction brands and include a range of heavy and light construction equipment. Heavy construction equipment product lines include general construction equipment such as large excavators and wheel loaders, and road building and site preparation equipment such as compactors, graders and dozers. Light construction equipment is also known as compact and service equipment, and its product lines include backhoe loaders, skid steer and tracked loaders, mini- and midi- excavators, and compact wheel loaders.
The company’s primary products and brands for the Construction segment are as follows:
New Holland Construction
New Holland Construction is a global brand that offers a wide range of equipment for farming, landscaping, and construction appliances. Products sold through the company’s New Holland Construction Brand include Skid steer loaders, compact track and wheel loaders, mini track loaders and excavators, loader backhoes, tractor loaders, small articulated loaders, forklifts and specialized attachments.
Case Construction
Case Construction is a global brand that designs and builds powerful construction equipment designed to meet the needs of the construction industry. Products sold through the company’s Case Construction brand include mini and heavy excavators, motor graders, wheel and tractor loaders, vibratory compaction rollers, compact dozers and track loaders, crawler dozers, skid steer and mini track loaders, compact track loaders, rough terrain forklifts, EV options and specialized attachments.
Eurocomach
Eurocomach sell products in over 40 countries. Products sold through the company’s Eurocomach brand include mini and midi excavators, compact track and wheel loaders, MTL50 track loaders for small and confined spaces and specialized attachments.
In 2021, the company completed the acquisition of Sampierana S.p.A., which provides Construction direct control over technology and manufacturing of Mini and Midi Excavators. In 2023, the company developed and launched its first range of mini track loaders under the company’s Eurocomach brand.
Construction's products often share common components to achieve economies of scale in manufacturing, purchasing, and development. Construction differentiates these products based on the relative product value, technology, design concept, productivity, product serviceability, color, and styling to preserve the unique identity of each brand.
The company’s construction products are also sold by its Agriculture dealers for certain uses. Sales to agriculture customers are still accounted for in the Construction segment, given the nature of the products.
The company began production and distribution of full-electric compact construction equipment in 2023. This includes electric mini excavators, compact wheel loader and tractor loader backhoe and small articulated loaders. The company plans to continue delivering further battery-powered compact construction equipment solutions to help its customers operate in enclosed and municipal job sites calling for no, or reduced, tailpipe emissions.
Financial Services
Financial Services provides and administers financing to end-use customers for the purchase of new and used agricultural and construction equipment and components sold through CNH's dealer network, as well as revolving charge account financing and other financial services. Financial Services also provides wholesale financing to CNH dealers and distributors primarily to finance inventories of equipment. Furthermore, Financial Services provides trade receivables factoring services to CNH subsidiaries. The European Financial Services operations are supported by the Iveco Group's Financial Services segment. Financial Services also provides financial products and services to dealers and end customers of Iveco Group companies in the North America, South America and Asia Pacific regions. The segment is referred to commercially as CNH Capital - the captive financial provider for the CNH family of brands, specializing in agricultural and construction equipment. In Brazil, it operates under the brand of Banco CNH.
Financial Services offers a range of financial products and services to dealers and customers in the various regions in which it operates. Retail financing products primarily include retail notes, finance leases and operating leases to end use customers and revolving charge account financing to purchase parts, service, rentals, implements and attachments from CNH dealers. Wholesale financing consists primarily of dealer floorplan financing as well as the management and purchase of trade receivables from CNH subsidiaries. Dealer floorplan financing gives dealers the ability to maintain a representative inventory of products. In addition, Financial Services provides financing to dealers for used equipment and machines taken in trade, equipment utilized in dealer-owned rental yards, parts inventory, working capital and other financing needs. As a captive finance business, Financial Services is reliant on and supports the operations of Agriculture, Construction, their dealers, and customers.
Financial Services’ strategy is to grow a core financing business to support the sale of the company’s equipment and parts while at the same time maintaining its portfolio credit quality, service levels, operational effectiveness and customer satisfaction. Financial Services also offers products to finance third party equipment and machines sold through the company’s dealer network or within its core businesses. Financed third party equipment includes used equipment taken in trade by the company’s dealers or equipment used in conjunction with or attached to its products.
In North America, retail customer and dealer financing activities, which support the sales of Agriculture and Construction, are managed through the company’s wholly owned financial services subsidiaries under the name of CNH Capital.
In Europe, Middle East and Africa, CNH Industrial Capital Europe S.a.S., which is majority owned by a subsidiary of BNP Paribas, 24.95% owned by CNH Industrial N.V. and accounted for under the equity method, provides retail financing to customers of Agriculture and Construction. Additionally, there are vendor programs with banking partners that provide customer financing to the company’s industrial segments in certain countries.
In Europe, companies of Iveco Group’s Financial Services segment manage and service CNH dealer financing receivables that are funded through a dedicated securitization. CNH Industrial Capital Solutions S.p.A. retains the securitization program's junior notes, and therefore retains substantially all the risks and the benefits of the underlying wholesale receivables.
For South America, retail customer and dealer financing activities are managed through the company’s wholly owned financial services subsidiary which supports the sales of Agriculture and Construction. For retail customer financing in Brazil, Banco CNH Industrial Capital S.A. also serves as a lender for funding provided by BNDES, a federally owned financial institution linked to the Brazilian Ministry of Development, Industry and Foreign Trade. In Argentina, vendor programs with banking partners are also utilized. CNH Financial Services serves as a lender for Iveco Group dealers and end customers in the region.
In Asia Pacific, CNH Financial Services supports the sales of Agriculture and Construction by providing retail customer and dealer financing activities in Australia, New Zealand and India, managed through wholly owned financial services companies. In China, Agriculture dealer financing activities are provided by and managed through a wholly owned financial services company. CNH Financial Services serves as a lender for Iveco Group dealers and end customers in Australia and New Zealand.
Customer Financing
Financial Services has certain retail underwriting and portfolio management policies and procedures that are specific to Agriculture or Construction. The company provides retail financial products primarily through its dealers, who are trained in the use of the various financial products.
Dealer Financing
Financial Services provides dealer floorplan financing, and to a lesser extent, the financing of dealer operations.
Financial Services leverages employees, third-party contractors, and digital technologies like ‘geo-fencing’ to conduct periodic stock audits at individual dealerships to confirm that the financed equipment is maintained in inventory.
Factoring
Financial Services also provides intragroup factoring of trade and other receivables. This activity involves the purchase, without recourse, of receivables of CNH subsidiaries, originating from the Industrial Activities segments, and due from third or related parties.
Sources of Funding
Financial Services has periodically accessed the asset-backed securities (‘ABS’) markets in the United States, Canada, and Australia, as part of its retail note and wholesale financing programs when those markets offer funding opportunities on competitive terms. Financial Services has also accessed the unsecured bond market in the United States, Canada, Brazil, Argentina and Australia and commercial paper markets in the United States to diversify its funding sources.
Competition
The company’s principal competitors in the agricultural equipment market are Deere & Company, AGCO Corporation, Claas Group, Kubota Tractor Corporation, Argo Tractors S.p.A., Same Deutz Fahr Group and Mahindra.
The company’s principal competitors in the construction equipment market are Caterpillar Inc., Komatsu Ltd., J C Bamford Excavators Ltd., Hitachi Construction Machinery Co, Ltd., Volvo Group, Liebherr Group, Develon, Bobcat, Kubota Tractor Corporation, SANY Heavy Industry Co., Ltd and Deere & Company.
Sales and Distribution
The company predominantly sells and distributes its Agriculture and Construction products through dealers. The Agriculture dealer network includes more than 2,500 dealer owners and more than 6,000 locations/points of sale. Construction sells and distributes products through approximately 427 full-line dealers and distributors with over 1,694 points of sale. The company’s dealers are responsible for retail sales of equipment to end users and after-sales service and support.
The company is generally more cost-effective to distribute its agricultural and construction equipment products through independent dealers, although as of December 31, 2024, the company operates a network of owned dealers for Case IH and the Construction segment in South Africa coming from the recent acquisition of its former distributor in the country. The company promotes a selective dealer development program, in territories with growth potential but underdeveloped representation by its Agriculture and Construction equipment brands, the program typically involves a transfer of ownership to a qualified operator through a buy-out or private investment after a few years.
Precision technology is integrated with the company’s Agriculture equipment as well as offered as aftermarket parts for retrofit solutions through its dealer network. The Raven brand is distributed through the CNH dealer network in all regions and through independent dealer/distributor networks, some of which are affiliated with strategic and industry partners. Raven products and services are also sold to third-party companies for inclusion in their respective equipment.
The company regularly advertise its products to the community of farmers, builders, and agricultural and construction contractors, as well as to distributors and dealers in each of the company’s major markets. To reach the company’s target audience, it uses a combination of general media, specialized trade magazines, the Internet, social media and direct mail. The company also regularly participates in major international and national trade shows and engage in co-operative advertising programs with distributors and dealers.
Parts and Services
The quality and timely availability of parts and services are important competitive factors for each of the company’s businesses, as they are significant elements in overall customer satisfaction and important considerations in a customer’s original equipment purchase decision. The company’s supply parts, many of which are proprietary, to support items in the product lines as well as for products it has sold in the past. The company also offers personalized aftersales customer assistance programs that provide a wide range of modular and flexible maintenance and repair contracts, as well as warranty extension services, to meet a variety of customer needs and to support the equipment’s' value over time. Many of the company’s products can have economically productive lives of more than 20 years when properly maintained, and each unit has the potential to produce a long-term parts and services revenue stream for it and the company’s dealers. To further support the productive life of the equipment, connected technology within the company’s machines has allowed it, together with the company’s cloud-based control rooms and its dealer service shops, to obtain results through analytics blended with the professional knowledge of the company’s products experts. The company is increasing the number of connected units supported proactively by control rooms that leverage service alarms, operators’ insights, predictive repairs and maintenance that enrich a suite of machine and farm data.
As of December 31, 2024, the company operated and administered 30 parts depots worldwide which support both Agriculture and Construction, either directly, through a joint venture, or through arrangements with warehouse service providers. This network includes eight parts depots in North America, eleven in EMEA, three in South America, and eight in other regions. These depots supply parts to dealers and distributors, which are responsible for sales to retail customers, and the company’s delivery systems provide customers with timely access to substantially required to support its products.
Research and Development (R&D)
In 2024, the company’s R&D expenses were $924 million.
Patents
The company holds approximately 11,000 registered patents in addition to trade secrets, licenses and trademarks related to its products and services.
Joint Ventures
As part of a strategy to enter and expand in new markets, the company is also involved in several commercial and/or manufacturing joint ventures. As of December 31, 2024, they included the following:
in Japan, the company owns 50% of New Holland HFT Japan Inc. (‘HFT’), which distributes the company’s products in Japan. HFT imports and sells the full range of New Holland agricultural equipment;
in Pakistan, the company owns 43.2% of Al Ghazi Tractors Ltd., which manufactures and distributes New Holland tractors;
in Türkiye, the company owns 37.5% of TürkTraktör ve Ziraat Makineleri A.S., which manufactures and distributes various models of both New Holland and Case IH tractors; and
in Mexico, the company owns 50% of CNH de Mexico S.A. de C.V., which manufactures New Holland agricultural equipment and distributes its agricultural equipment through one or more of its wholly owned subsidiaries.
Environmental and Other Regulatory Matters
The company’s operations globally are also subject to risks of violations of laws prohibiting improper payments and bribery, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act as well as a range of national anti-corruption and antitrust or competition laws that apply to conduct in a particular jurisdiction.
History
CNH Industrial N.V. was founded in 1842. The company was incorporated in 2012 as a public limited liability company (naamloze vennootschap) under the laws of the Netherlands.
