CNH Industrial Says It Will “Break New Ground”

The newly formed CNH Industrial recently presented its vision for the company’s future. 

CEO Scott Wine says, “We never stopped breaking new ground. In an ever changing world with never ending challenges too much depends on what we do. It's a singular focus shared by each and every member of our team. Breaking New Ground leads us to innovations that combine the strength of our past with the intelligence of tomorrow.” 

He says this includes: 

• customer focused solutions for real world problems
• alternative fuels and electrification
• autonomous and precision systems that streamline production and boost profitability

“Innovation, sustainability and productivity are the things that will drive us going forward,” Wine says. “We put the customer at the middle of everything we do---better products and better service.”

CNH Industrial is now focused on its two-faceted business—agriculture and construction. Wine says this focus affords the company a great advantage. About 37% of the company’s business is in North America, with another 37% in Europe. 

One of the headlines the company generated was its $2+ billion acquisition of Raven, which was finalized at the end of 2021.

“With the acquisition of Raven, we don't become great right away, but it puts us on a path to greatness,” Wine says. “Raven is a nice shot in the arm from a technology perspective.” 

He says the company will apply a disciplined approach to future mergers and acquisitions, weighing more heavily to buying to build capabilities and grow profitability faster. 

Regarding technology specifically, CNH Industrial also launched its strategic investment arm, CNH Industrial Ventures. This builds on how the company has already invested in technology’s such as Augmenta and Monarch Tractor. 

“We're going to talk about this idea of marrying great iron with great technology,” Wine says. 

Parag Garg, Chief Digital Officer, says CNH industrial has a long term strategy in how precision technology tackles challenges by uniting data analysis, and machine automation, and is the backbone of the company. 

“Our team is building strong precision technology for every season,” Garg says. “Our vision for the future is to make precision technology, so smart and so easily that the customers can focus on what really matters to them.”

As an illustration of how the company is investing in developing its technology he shares in 2020, the company in-housed five times more tech talent compared to the previous year.

As for what’s to come, he shares one example in Augmenta, which can reduce fertilizer applications by 40% and is being tested in Texas in the coming months on CNH machines. 

As a second highlight, Garg points to enhancing vehicle-to-vehicle communications. 

And then also, as a follow up to the Raven acquisition and the ongoing innovations in autonomous solutions, expect to see those technologies across the entire vehicle platform offering. 

Derek Neilson, President of Agriculture at CNH Industrial, echoes how farmers have a clear mandate to increase productivity, which will rely on technology advancements. 

“Great iron and great technology are critical to maintaining a strong partnership was the dealers and customers,” he says. 

While demand is outpacing supply through 2022, Nielson shares a forecast of an infliction point sometime in 2023 with normalization expected by 2024. 

He also shares a robust pipeline of new products coming from the company. While there were 40 launches in 2021, we can expect 150+ connectivity/automation enabled launches through 2024.