April 21, 2010

CNH's parent company to spin off Racine's construction, agriculture manufacture into new business

CNH offices in Racine

CNH's parent company announced Monday it was spinning off its construction and agriculture manufacturing business into a separate business.

Fiat will "demerge" from CNH to focus on building a global auto market. Pending Fiat board approval, CNH will become part of the new Fiat Industries and sold separate from Fiat on the Milan stock exchange.

Here's a good story on today's announcement. The Wall Street Journal, Associated Press and other are also reporting Fiat's announcement.

An insider at CNH in Racine said it's unclear what this means for local business.

"This was unexpected," they said. "People here are still trying to digest."

12 comments:

  1. If we only had KRM!

    ReplyDelete
  2. I wonder what this does to their Racine operations.

    ReplyDelete
  3. It means Racine ops keep building great tractors that are selling and in demand and Fiat has another go round trying to sell little econoboxes in the North American market.
    Kia can do it can Fiat ?
    Fix It Again Tony !

    ReplyDelete
  4. Could someone call the Journal Times and notify them there is a story here? I swear they have no idea what is happening in their own community.

    ReplyDelete
  5. Looks like the end of CNH. For those that work there I would be dusting off your resumes!!

    ReplyDelete
  6. Looks like the Bush's and the Johnsons are at it again

    ReplyDelete
  7. It's doubtful anything much will happen. CNH (Case) has great workers in the office and factory. If they have a market the tractors will be built.

    They can change the name a million times it still will be Case here in Racine.

    ReplyDelete
  8. CNH/Case has always been a heavily mismanaged company with unstable employees. This is no shock and just another bump in this company's rough history.

    ReplyDelete
  9. Dickertville,

    The Empty Building Capitol of America!

    ReplyDelete
  10. Tim the Shrubber4/22/2010 8:41 AM

    A few interesting lines from the 21APR2010 WSJ article on the change...

    "For years, investors and analysts have said the company's conglomerate structure made Fiat shares hard to value, discouraging investment in the company. Keeping the businesses yoked together, however, has at times helped Fiat ride out slumps in consumer spending as steady revenue from Fiat's industrial activities offset drops in passenger-car sales."

    This makes it sound like...

    1. we should expect the new Fiat Industrial to be fairly stable...I mean if these activities were the source of stability for the greater conglomerate, then why should we expect this to change?

    2. and perhaps this might make it easier for CNH to attract new investment? Well, that does not sound bad.

    We will have to see, but it certainly does not sound like the sky is falling.

    ----

    Of course, it is more fun to make pretty much irrelevant remarks about KRM, the Johnsons, and Mayor Dickert.

    Seems to me that Fiat is creating a safe company and a risky company, and CNH is in the safe side.

    ReplyDelete
  11. soon we can bulldoze it and have a nice parking lot. like southside industrial park.

    ReplyDelete
  12. Tim the Shrubber4/22/2010 12:10 PM

    "soon we can bulldoze it and have a nice parking lot. like southside industrial park."

    Snark and sarcasm works better when it isn't a gibberish response.

    ReplyDelete