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CNH Industrial announces important product specialisation developments at its Italian commercial vehicles manufacturing sites

Release Date: Apr-10-2015
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The Company plans to promote product specialisation operations at its facilities in Suzzara and Piacenza. These sites, which conduct manufacturing for the Iveco and Iveco Astra brands, will see an increase in production that will boost operations and employment.

In its continued efforts to promote production specialisation and efficiencies, CNH Industrial N.V. (NYSE: CNHI / MI: CNHI) is strengthening its manufacturing network in Italy to increase production and competiveness, promote product excellence and as a consequence, better utilise local workforces.

Its strategic plans, which fall under the Company’s previously announced and ongoing Efficiency Program, foresee the absorption of several operational activities from its Spanish facilities in Madrid and Valladolid so that these sites can better focus on their newly established missions for the sole production of Iveco heavy commercial vehicles. This shift from Spain to Italy presents a significant opportunity to maximise the capabilities of the Italian facilities.

The two Italian sites involved are: Suzzara, which currently manufactures the Iveco Daily light duty commercial vehicle range and Piacenza, which manufactures heavy-duty logistics vehicles, in particular for quarry operations and construction sites for the Iveco Astra brand as well as applications for the Iveco Defence Vehicles brand.

Currently, Suzzara is responsible for the main production of the chassis cab and van versions of the Daily. Starting in the second half of 2016, it will begin absorbing the additional manufacturing activities associated with the Daily currently located in Valladolid, Spain. By concentrating the Daily’s European production at Suzzara, the site’s competitiveness will improve through increased plant capacity utilisation.

This inflow to Suzzara will in turn require a larger overall workforce for the facility. This solution provides a further contribution to solving the issue of employee surplus at its Iveco sister site in Brescia. As Brescia has seen a reduction in its production volumes due to a sharp decline in market demand for medium range trucks, Suzzara will be able to provide jobs for up to 600 CNH Industrial employees from Brescia by the end of 2016.

This operation also signals positive growth to the Iveco Astra facility in Piacenza. Under the plan, the Madrid-based production of special extra heavy vehicles and the chassis for defence vehicles will transfer to Piacenza in the second half of 2015. These changes are expected to create over 40 new jobs.

London April 10, 2015

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