September 2009 Vol. 64 No. 9
Business
CNH Parts & Service, SRC Form Joint Venture
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.
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
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