The Company plans to focus the operations of its Iveco commercial vehicles manufacturing facilities in Madrid and Valladolid, Spain. These changes are being carried out with the aim to maximise production, improve site specialisation, and secure jobs.
In its continued efforts to promote product specialisation and efficiencies at its manufacturing sites, CNH Industrial (NYSE: CNHI / MI: CNHI) has taken the opportunity to assess where its strengths are and how best to develop them going forward at its Iveco facilities in Madrid and Valladolid, Spain. In line with the Company’s ongoing Efficiency Program, announced in 2014, the plan will see the two sites working together to manufacture Iveco heavy trucks as market demand in this sector increases.
The CNH Industrial facilities in Madrid and Valladolid are among the best performing for the Company in terms of its World Class Manufacturing operating standards. Currently, the sites are tasked with a number of different product operations for brands of CNH Industrial. The assembly of Iveco’s Stralis and Trakker heavy truck ranges is conducted in Madrid. The site has also been producing extra heavy special vehicles. At present, the mission of Valladolid is to manufacture chassis cab versions of the Iveco Daily, a light duty commercial vehicle.
Under the announced plans, Madrid will be fully dedicated to the assembly of Stralis and Trakker heavy commercial vehicles. This is in response to the forecasted upturn in the heavy commercial vehicles sector. Valladolid will in turn be transformed into a centre of excellence for heavy commercial vehicle cab production. The transfer of cab operations from Madrid to Valladolid will be executed in two steps beginning mid-2015 and concluding at the end of 2016. This new mission will secure employment at both the Valladolid and Madrid facilities.
In order to allow for a future increase in volumes for heavy commercial vehicles, the production of the aforementioned extra heavy special vehicles and Iveco light duty vehicles will be transferred to existing facilities in Italy that already specialise in manufacturing these ranges.
The Iveco Astra plant, located in Piacenza, Italy, dedicated to the production of highly customised vehicles for sectors such as mining and civil protection, will assume production of the extra heavy special vehicles from Madrid, in accordance with the current mission of this site. CNH Industrial’s facility in Suzzara, Italy, will become the central production hub for the Iveco Daily. The transfer of production is expected to occur by the end of 2016.
London, April 10, 2015