Burr Ridge, Ill.-based CNH Global N.V. last week announced a reorganization of its construction equipment activities. In the new organization, CNH will maintain its existing construction brands, Case CE, New Holland Construction and Kobelco, while consolidating its internal construction equipment management structures.
The new construction equipment organization will be headed by Jim McCullough, who is currently the CEO of Case Construction Equipment, effective immediately. McCullough will report directly to Harold Boyanovsky, president and CEO of CNH.
The objective of the re-organization, triggered by an unprecedented decline in the global construction equipment market, is to streamline internal operations and reinforce product architectures while significantly reducing the costs of managing brand networks and building brand value.
“CNH has moved quickly to adapt to the deteriorating construction equipment market by reducing production and headcount, cutting costs and adjusting operating levels,” said Harold Boyanovsky, CNH president and CEO. “With this new structure, our construction equipment business is better positioned to get through the downturn and to emerge in a position of strength.”
In North America, Europe and Latin America, the new organization will be led by regional managers reporting directly to McCullough. Sales administration, marketing and back-office functions for both construction equipment brands will be centralized within the regions and overseen by McCullough and a small central staff.
In the rest of the world, CNH’s International Region organization, headed by Franco Fusignani, will now include the construction equipment businesses alongside CNH’s agriculture equipment businesses. In this capacity, Fusignani will continue to report directly to Boyanovsky.
The brands’ sales forces and distribution networks will remain separate, enabling them to continue to focus their efforts on brand-specific sales and service.
Giuseppe Fano, the head of New Holland Construction Equipment, has elected to leave CNH to pursue other opportunities.
CNH Global N.V., a majority-owned subsidiary of Fiat S.p.A., is a world leader in the agricultural and construction equipment businesses.
