CNH announced its five year business plan Transform 2 Win at its Capital markets day event in New York, in a bid to grow market shares and increase its Ag net sales by 30%. Net sales for “off highway” equipment is projected to be in region of $15.6m by 2024, 75% of which will be predominantly agricultural based.

Each of its agricultural divisions will build on individual market positioning, including better positioning of differentiated brands, strengthening product lineups and improving product distribution. Investments in automation and digitalisation will accelerate according to CNH CEO Hubertus Mühlhäuser. Although given the split, CNH brand will continue to offer its own FPT engines in “off-highway” machines as done currently.

Case IH and New Holland

CNH Industrial president for its agricultural division Derek Neilson explained that Case IH will remain a full liner; aiming to differentiate itself by focusing in particular on machine technology, providing customers with cutting edge innovation.

“New Holland will continue to grow on the back of its strong harvesting hay and forage expertise, operating as a full liner; servicing all of its customers” focusing on innovation, sustainability and cost efficiency,” Neilson continued.

Steyr

Neilson said they will “invest heavily in Steyr brand to strength its position as a premium European brand”.

“As a premium short-liner, Steyr is open to partnerships with implement brands that are complementary to its superior positioning”. This strategy will allow dealers already carrying other implement brands to continue to do so while being able to offer a “premium” brand of tractor.

Neilson went on to say that there are many product developments in the pipeline across the multiple brands. He said CNH will shortly launch a “fully sustainable mid-range natural gas-powered tractor”. Units are set to enter series production, with pre-series testing well under way.

It is believed that brands will discontinue products that may have a low market share, in an effort to simplify product ranges.

Its clear that automation and digital farming solutions are the core of CNH strategy, with the number of precision and digital solutions to be doubled by 2024. The current farm equipment market is worth $80bn annually and is set to grow, according to Derek Neilson.