The truck and bus manufacturing group separates from CNH Industrial, which will remain active in the agricultural and construction machinery sector. In view of the stock exchange listing and growing revenues, with the energy transition as a stimulus to new technologies
Iveco leaves Cnh Industrial (the professional vehicle hub of the former FCA group) to create an independent entity, specialized and focused in the production of commercial and special vehicles, buses, powertrains and dedicated financial services. In fact, a separation is made between the “On-Highway” activities that will merge into the Iveco Group and the “Off-Hughway” activities relating to agricultural and construction stains, announced during the Capital Markets Day on 3 September 2019. The motivation it must be sought in the different dynamics of the two sectors, which as such must be treated differently also according to the profound changes that they will undergo like the car market. With the spin-off Iveco will land on the Milan Stock Exchange, with important expectations expressed during the Investor Day held last November 18: the aim is to increase revenues from 11.8 billion in 2016 to 17.5 billion expected in 2026, while Earnings forecasts see an increase from 0.3 billion five years ago to 0.8 billion, also in 2016.
THE NUMBERS OF IVECO
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The demerger is scheduled for 2022, after the shareholders’ meeting of Cnh Industrial on 23 December that will give the go-ahead for the operation, while trading on the stock exchange will open on the following 3 January. Iveco Group NV will become the holding company of a global group engaged in the design, production, marketing, sale, maintenance and financing of industrial vehicles, commercial vehicles, buses and special vehicles for firefighting, defense and other uses, as well as combustion engines, systems engines, transmissions and axles for such vehicles, engines and alternative propulsion systems for agricultural and earthmoving machinery and for marine and power generation applications. The Company’s registered office will be in Amsterdam, the Netherlands, while the main and commercial office will reside in Turin. After the split, the group will employ approximately 33,500 people, products and services will be available in 36 countries.
THE GALAXY OF THE IVECO GROUP BRANDS
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Within the group, the Commercial and Specialty Vehicles division designs, manufactures and distributes a complete range of light, medium and heavy vehicles for the transport and distribution of goods under the Iveco brand. Then urban, interurban and tourist buses with the Iveco Bus and Heuliez brands. Iveco Defense Vehicles is entrusted with the vehicle branch for civil protection and defense missions. Finally, Astra produces vehicles for quarries and mines, while Magirus produces fire-fighting vehicles. Powertrain designs, manufactures and distributes, under the Fpt Industrial brand, a range of combustion engines, alternative propulsion systems, transmission systems and axles for on and off-road applications, as well as for marine and power generation. Financial Services offers a range of financial products and services to Iveco Group dealers and customers under the Iveco Capital brand. In addition, Financial Services, leveraging its specific expertise, will provide support to CNH Industrial’s post-Demerger financial services in Europe, Africa and the Middle East, providing business process services and receiving a commission for services rendered.
THE CHALLENGE OF CUTTING EMISSIONS
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As for the car sector, the industrial and commercial vehicle sector will also have to deal with the reduction of emissions and new technologies. During the Investor Day, the CEO Gerrit Marx illustrated the plans to reduce the carbon footprint of the group, highlighting how already today it is among the most active in the proposal of vehicles powered by natural gas (Lng for trucks and Cng for commercial). The carbon neutrality of the entire industrial process is set for 2040 through a series of intermediate objectives, such as the abatement of the CO2 emitted by the Iveco plants by 2030. In 2035, however, the group plans to cut carbon dioxide by 35% issued by its vehicle range thanks to the introduction of electric vehicles such as the e-Daily and the zero-emission truck developed with Nikola and initially intended for the American market.
November 19, 2021 (change November 19, 2021 | 14:22)
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