CNH Industrial is taking back the distribution of its Case IH and New Holland Agriculture brands to dealerships in New Zealand
In an attempt to expand its presence in the New Zealand agricultural market CNH Industrial has announced that from July 2022 it will no longer have a distribution agreement in place with CB Norwood Distributors (trading as “Norwood”).
For the past 17 years Norwood has run the operation for CNH Industrial in New Zealand with the wholesale rights to sell Case IH and New Holland machinery to New Zealand dealerships.
However, it has been observed by the industry that this arrangement is at odds with the way the other majors handled product lines in New Zealand. For instance John Deere has been dealing direct with New Zealand dealerships and as a result has gained a handy advantage over many of its rivals.
CNH Industrial currently has a game face of increasing its market share and as a result has spent a tonne of money buying start-up badges over the past 12 months, and wants to offer that full suite of models through a dedicated management team with its finger on the pulse.
In June 2021 CNH Industrial was prepared to pay US$2.1 billion bid to take over Raven Industries and position itself to take the lead in autonomous farm vehicle manufacture.
CNH now controls the OMNiPOWER platform, an autonomous farm vehicle that currently leads all other, see the background of this purchase on the link above.
And to show its commitment to the local market, CNH Industrial acquired the manufacturing site of the former Horwood Bagshaw operation at Mannum SA just shy of two years since taking over the seeding and tillage badge product lines.
The Horwood Bagshaw factory purchase has secured a strong Aussie foothold manufacturing base for CNH, see the background to the purchase on this link.
All this appears to be working for CNH Industrial as teh company reported first quarter 2021 consolidated revenues of US$7.5 billion, up 37% compared to the first quarter of 2020.
Back to the reason behind the end of the arrangement with CB Norwood, CNH Industrial Managing Director – Agriculture, Brandon Stannett had this to say, “We see this as an opportunity to enhance our supply chain efficiencies and be closer to the dealer network and our customers.
“The chance to go direct to the New Zealand market through the existing dealer network, and to be able to participate more closely in this dynamic and growing market, is exciting to all of us at CNH Industrial.
“Norwood has a long and proud history in the New Zealand agricultural industry, and we thank them for their commitment to our Case IH and New Holland brands for many years, over 17 years of which as distributor, and we wish them well into the future.
“We appreciate Norwood’s ongoing commitment to Case IH and New Holland dealerships, and their customers, which will continue until the transition process is finalised mid next year.
“We will continue to explore the opportunities to build on the strong relationship with Norwood from a retail footprint perspective.”
Brandon Stannett said it was very much ‘business as usual’ for Case IH and New Holland dealerships, and for their customers.
“It is the intention for existing agreements and processes for dealerships to remain unchanged during the transition process, and CNH Industrial would continue to work closely with dealerships.”
There would be no disruption for customers either, Mr Stannett said, with existing orders to be filled, new orders to be processed as usual by dealerships, and service and warranty arrangements to be fully catered for.
“Our intention is for a seamless transition with a renewed emphasis for customers on delivery efficiencies, service, capital, parts supply and support.”
“Ultimately, customers can be assured CNH Industrial, and our Case IH and New Holland brands, are committed to the advancement of the New Zealand agriculture industry and will continue to serve the needs of their business.” Brandon Stannett concluded.
The announcement only relates to the distribution rights of CNH Industrial product, with Norwood’s retail footprint remaining unchanged.