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CNH Industrial weighs options for Iveco truck unit

The possibility of separating the truck business from the company’s more profitable tractor division has long been mooted

CNH Industrial, Tractor, Truck business, Iveco, Italy, Fiat Chrysler Automobiles NV, CASE Construction, New Holland

CNH Industrial NV, the tractor maker backed by Italy’s billionaire Agnelli family, is evaluating options for its Iveco truck business as it seeks ways to unlock value.

The company is weighing possibilities including spinning off the Iveco division or combining it with a competitor. It could announce a strategic review of the business as soon as next week, when the company is ho lding an investor meeting.

CNH, which was once part of carmaker Fiat Chrysler Automobiles NV, makes farm equipment under brands like Case and New Holland. The possibility of separating the truck business from the company’s more profitable tractor division has long been mooted, with then-Chief Executive Officer Richard Tobin saying last year he would consider spinning off Iveco after further strengthening CNH’s balance sheet.

No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said. CNH’s agricultural business, by far its biggest unit, boasts profit margins that are more than triple those of the trucks operation.

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June 2020
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