CNH Parts & Service, SRC Form Joint Venture

New Distribution Facility Announced; Expansion Of FPT After-Sales Planned
September 2009 Vol. 64 No. 9
A newly developed 250,000 square foot distribution center in Portland, OR, will serve more than 130 equipment dealerships.

CNH Global has agreed to develop a full scale remanufacturing operation and services company as a joint venture with Springfield Remanufacturing Corp. (SRC) to be called CNH Reman.

The partnership brings together CNH Parts & Service product expertise, access to equipment and dedicated dealer networks with SRC’s remanufacturing operations, capabilities and expertise.

Case IH, Case Construction Equipment, New Holland Agriculture, New Holland Construction, Kobelco and Fiat Powertrain Technologies (FPT) dealers will be able to more readily provide customers with a much larger line of remanufactured products aimed at lowering the total cost of ownership.

"We see remanufacturing continuing to grow in importance in North America, so CNH is expanding its long term relationship and partnership with SRC,” says Eric Bippus, vice president of sales and marketing, CNH Parts & Service, North America. “Together with SRC, we are positioned to reach aggressive growth targets designed to serve our dealer and customer needs and meet investor expectations."

Dealers and customers will realize several advantages with an expanded selection of reman products:

  • Remanufacturing gives customers the opportunity to purchase replacement assemblies and components that are just like new – sometimes better than new due to engineering enhancements – at a reduced price and with a competitive warranty;
  • Reman assemblies mean increased efficiencies and productivity due to reduced repair times. This is something that both customers and dealers appreciate, especially during peak seasons when downtime is especially costly; and
  • Reman is an important way to support sustainable development, which aligns with CNH’s commitment to environmental responsibility.

“Through this agreement, we will be able to better focus on reman and offer customers more
breadth and depth across all our product families,” says Bippus.

New distribution facility
CNH Parts & Service has also announced plans to occupy a newly developed 250,000 square foot distribution center in Portland, OR. Company officials expect the state of the art parts distribution facility to be fully operational in the first quarter of 2010.