Q&A

CNH Industrial is separating its On-Highway (commercial vehicles and powertrain) and Off-Highway (agriculture, construction and specialty vehicles) segments into two listed entities, as part of its new five-year 2020-2024 business plan, “Transform 2 Win.” CEO Hubertus M. Mühlhäuser and other CNH executive leaders made the announcement Sept. 3 at its Capital Markets Day event at the New York Stock Exchange (NYSE).

The spin-off of its On-Highway assets-Iveco, Iveco Bus and Heuliez Bus commercial-vehicle brands and the FPT Industrial powertrain business-is expected to be completed in early 2021. According to Mühlhäuser, the move results from an extensive portfolio review that revealed the two businesses have diverging regulatory and customer requirements and are impacted differently by four accelerating industry megatrends: digitalization, automation, alternative propulsion and servitization.