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.

The facility will serve more than 130 New Holland, Case IH and Case Construction equipment dealerships in the Pacific Northwest, and is expected to bring 35 to 40 new jobs to the Portland area, according to Anu Goel, vice president, North American Parts Operations for CNH Parts & Service. CNH is investing more than $15 million in the new distribution center, which also allows for future expansion.

The new parts distribution facility will extend the company’s next day distribution capabilities to equipment dealerships in nearly all regions of North America, and marks the completion of the company’s transition of its distribution operations from third party logistics providers in North America to distribution sites that are managed and staffed by CNH.

The Portland project also continues the company’s previously announced plans to improve dealer and customer service, improve efficiency, and reduce overall logistics costs of its parts distribution network. In February of 2007, CNH opened a 500,000 square foot parts distribution center in Cameron, MO.; in September, 2003, the company opened a master depot in Lebanon, IN. Once the Portland center is up and running, the company’s parts distribution operations will be handled by 11 facilities in North America.

Fiat Powertrain Technologies
In related news, CNH Global N.V. and Fiat Powertrain Technologies (FPT), both companies of the Fiat Group (FIA:MI), have announced a joint agreement to expand the FPT North America (NA) dealer network. FPT NA and CNH Parts & Service will cooperate in the areas of after sales service and parts.

FPT NA will select and designate approximately 300 independently owned dealers from the CNH family of brands, to operate as authorized FPT service dealers. Ted Bregar, general manager and chief operating officer of FPT North America, said: “The dealer principals have expressed a high level of interest, capability and commitment for expanding their participation in the North American engine business.” Case, New Holland and Kobelco Construction and Case IH and New Holland Agriculture dealers are attracted to the unique opportunity to become a part of the FPT brand in North America because of its international reputation, and the attractive features and benefits which FPT engines offer to the North American customer base.

For more information, contact Kris Harper: (262) 636 6294, kris.harper@cnh.com