CASE CONSTRUCTION EQUIPMENT
NEW HOLLAND CONSTRUCTION
Construction Equipment’s product lines are sold primarily under the Case and New Holland Construction brands. Case provides a wide range of products on a global scale, including a crawler excavator that utilizes technology from Sumitomo (S.H.I.) Construction Machinery Co. Ltd. (“Sumitomo”). The New Holland Construction brand family also markets a full product line of construction equipment in most regions.
On May 12, 2014, the Group entered into a new licensing agreement with Sumitomo, a wholly owned subsidiary of Sumitomo Heavy Industries, Ltd. Under this new technology license and component supply agreement, CNH Industrial will manufacture Sumitomo designed crawler excavators (models ranging from 13 to 35 tons) at designated plants within its manufacturing network. Start of production of the new localized models is planned for mid-2015. This agreement also extends the existing Global Product Supply agreement between CNH Industrial and Sumitomo for the sourcing of excavators manufactured in Sumitomo plants. Since 1992, Sumitomo has been a supplier to CNH Industrial global distribution network of excavators ranging from 7 to 80 tons.
Construction Equipment products often share common components to achieve economies of scale in manufacturing, purchasing and development. Construction Equipment differentiates these products based on the relative product value and volume in areas such as technology, design concept, productivity, product serviceability, color and styling to preserve the unique identity of each brand.
Heavy construction equipment product lines include crawler and wheeled excavators, wheel loaders, compactors, graders and dozers for all applications. Light construction equipment product lines include backhoe loaders, skid steer and tracked loaders, mini and midi excavators, compact wheel loaders and telehandlers. The brands each offer parts and support services for all of their product lines. Construction Equipment’s products are generally sold with a limited warranty that typically runs from one (1) to two (2) years.
Effective December 31, 2012, the initial term of a global alliance with KCM and Kobe Steel Ltd (“KSL”) expired and the Group entered a new phase of non-exclusive licensing and supply agreements. Subject to the terms of existing agreements, the segment will continue to manufacture excavators, based on current Kobelco technology, in the segment’s plants and purchase select models of whole goods as well as component parts from KCM until at least December 31, 2017. With the end of the initial term of the global alliance, the Group sold its 20% ownership interest in KCM to KSL and unwound the co-ownership with KCM of certain companies formed in connection with the global alliance. In addition, the territory and marketing restrictions in the Americas and EMEA expired on December 31, 2012, and such restrictions expired in APAC on July 31, 2013. The Group continues to evaluate its Construction Equipment business with a view toward increasing efficiencies and profitability as well as evaluating its strategic alliances to leverage its position in key markets.
Innovation and New Products
Case Construction Equipment
In NAFTA, Case Construction Equipment previewed new Tier 4 final wheel loaders at ConExpo in March. Each new wheel loader delivers best-in-class horsepower with a 6.7-liter SCR engine that also provides quick throttle response and impressive torque. The new models provide up to a 10% increase in fuel economy over the previous E Series. The brand also previewed the new F Series line of compact wheel loader models, completely redesigned to provide improved maneuverability, versatility and performance and equipped with Tier 4 final engines. Additionally at ConExpo, Case previewed the new Tier 4 interim DV209 and DV210 high frequency asphalt compactor models. They represent the addition of two new models to Case’s high frequency double-drum range, giving road builders more control and versatility to dial compaction performance to match the thickness and required density.
In Brazil, Case Construction Equipment participated at the May Agrishow fair in Ribeirão Preto, displaying several machines that have agriculture related capabilities (such as the 621D and 721E wheel loaders) which can be used in sugar cane production applications.
In September, Case Construction Equipment launched in Europe the new F Series range of compact wheel loaders that sets new standards of productivity, versatility, comfort, all with low cost of operation. The four model line-up, ranging from the 4.4 ton 21F to the 6.2 ton 321F, delivers consistently high levels of performance in every task with a powerful, highly efficient new hydraulic system. The low cab means the new compact wheel loaders move efficiently in every jobsite and are easy to transport.
In North America, Case Construction Equipment’s M Series crawler dozers were named as one of the 2014 “Contractors’ Top 50 New Products”. The Contractors’ Top 50 list was compiled based on total reader inquiries from Equipment Today magazine as well as user engagement on ForConstructionPros.com over a 12-month period.
In October, in North America, Case introduced the new Tier 4 Final TR310 Alpha Series compact track loader at GIE 2014, in Louisville, Kentucky.
In December, five different U.S. magazines included Case Construction Equipment products into their top choice lists: CX55B compact excavator, CX350D excavator, SR210 skid steer loader, M Series dozers, 821F, 921F and 1221F wheel loaders and F Series compact wheel loaders were cited among the best 2014 construction equipment vehicles.
In India, for the second consecutive year, Case Construction Equipment has received the prestigious “Best Seller Award” for its locally manufactured compactors from Equipment India, the country's first and only infrastructure equipment magazine since its inception in 2008. The award ceremony was held at the International Trade Fair in Greater Noida, in December.
New Holland Construction
New Holland Construction presented an upgraded skid steer and compact track loader range compliant with Tier 4 standards. All models equipped with Powertrain 90 hp engines comply with Tier 4 interim emission requirements by using High Pressure Common Rail (HPCR) technology. The new models benefit from increased productivity, improved fuel efficiency, increased up-time through best-in-class serviceability and better operator comfort.
New Holland launched the 12D wheel loader in LATAM, focused on the heavy civil construction and rental segments.
In LATAM, New Holland held "Yellow Day" events with crawler excavators, dozers and wheel loaders, offering the possibility to test the equipment and train Brazilian vendors.
In Europe, New Holland Construction developed a B100C backhoe loader for use in the marble quarry sector. The B100C backhoe loader is equipped with a support arm and chain cutter, mounted in place of the traditional backhoe, offering a new method for cutting blocks of marble. The B100C was fitted with a chain cutter developed by marble cutting specialist Benetti Macchine S.p.A., working in close collaboration with the New Holland Construction engineering division in Lecce.
In August, New Holland Construction increased its portfolio of products manufactured in Brazil, after the localization of the dozer model D140B in the Group’s facility in Contagem (Belo Horizonte, MG). The D140B comes equipped with an engine developed by Powertrain, a common rail injection system. Equipped with a turbocharger and intercooler, the engine meets the certification standards of Tier 3 emissions.
In LATAM in October, New Holland Construction was chosen to receive the “2014 Top Engineering Award” in the category Machines/Vehicles – Excavators/Tractors. Promoted by the Association of Engineers, alumni of the School of Engineering at the Federal University of Minas Gerais and the Memory Center of Engineering, the award honors the best suppliers to companies of various sectors and individuals that contributed to the economic, social, cultural development and, in particular, to the engineering field.
In April CNH Industrial announced a new strategic partnership with Leica Geosystems, a leading global provider of design, measurement and visualization technologies, specializing in machine control solutions for construction equipment. Under this agreement, Leica Geosystems will initially provide CNH Industrial's Case and New Holland Construction brands with machine control solutions for excavators, dozers and graders for both factory fit and aftermarket applications.