After making a number of changes at the very top of its organization charts in recent months, CNH Industrial N.V. has now announced a huge series of changes to its overall structure.
The series of changes announced today, includes focusing its Global Executive Committee (GEC) formerly called the Group Executive Council. The GEC is the operational decision-making body of CNH Industrial, which is responsible for reviewing the operating performance of the segments and making decisions on certain operational matters.
“Our industry is experiencing an ever-accelerating rate and growing magnitude of change fueled by megatrends such as digitalization, automation, electrification and servitization. Companies need to adapt, change and revitalize themselves continuously in order to meet these business challenges and successfully generate long-term value,” said Hubertus Mühlhäuser, chief executive officer, CNH Industrial.
The company’s announcement said that with these organizational changes, CNH Industrial is seeking to become more customer-centric, by enhanced focus on its five operating segments, including becoming more entrepreneurial, reducing complexity and empowering these operating segments, while retaining “the right level of corporate control,” become more lean and agile, by simplifying decision processes as well as streamlining the organizational structure.
Further CNH says it seeks to become more innovative, by enabling faster and more market focused innovations both in terms of hardware and software as well as new business models.
Overall, CNH said its organization will be simplified by strengthening its five global segments supported by streamlined global functions. The former regional structure will be largely absorbed into the operating segments, thus bringing the businesses closer to their customers and accelerating decision-making processes, the company said.
The five operating segments will be fully responsible for the global growth and performance of the respective businesses, increasing focus and accountability.
As part of this, each operating segment will have product line leaders, brand leaders and support function leaders.
- Product line leaders will manage global product roadmaps and introductions as well as product cost and quality to ensure global consistency.
- Brand leaders will manage all commercial and go-to-market aspects including the positioning of the company’s brands.
- Support function leaders will drive segment specific processes and systems including finance, information communication technologies and talent, amongst others.
The five operating segments and the GEC members leading each of them are:
Agriculture comprising the global agricultural brands of Case IH and New Holland Agriculture, together with the regional brand of Steyr. The Agriculture segment will be led by Derek Neilson, president Agriculture, who was the former COO of the EMEA region, a role he held since 2015.
Commercial and Specialty Vehicles includes the commercial vehicles brand Iveco, bus and coach brands Iveco Bus and Heuliez Bus, off-road and quarry vehicles brand Iveco Astra, the Magirus firefighting brand and the Iveco Defence Vehicles brand, which focuses on civil protection and defense vehicles. This segment will be led by Gerrit Marx, president Commercial and Specialty Vehicles, who newly joins CNH Industrial. Marx worked in the commercial vehicle segment for Daimler Trucks and Volkswagen in different world regions.
Construction is comprised of the Case Construction Equipment and New Holland Construction brands. The Construction segment will be led by Carl Gustaf Göransson, president Construction, who has been responsible for the construction segment since 2016.
Powertrain focuses on the FPT Industrial brand, producing engines, powertrains, axles, and transmissions. The Powertrain segment will continue to be led by Annalisa Stupenengo, president Powertrain, who assumed this role in 2015.
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Financial Services oversees global financial services in the agricultural, construction equipment and commercial vehicles industries. The Financial Services segment will continue to be led by Oddone Incisa, president Financial Services, who assumed this role in 2013.
Given the enhanced focus of CNH’s five global operating segments, and the related transfer of business responsibility, the number and size of corporate functions has been reduced and their areas of responsibility streamlined, the company said.
Going forward, the corporate functions will focus on core company tasks, including functional strategies, controls, systems and processes, reducing overheads and enabling faster decision-making and guaranteeing the adequate checks and balances in the new organization.
At the same time, resources and funding have been reallocated allowing the company to accelerate its activities in the areas of, amongst others, automation, vehicle electrification, digitalization and servitization.
Finance, M&A and sustainability will oversee the consolidated financial performance and controls, as well as financial planning and analysis, tax, treasury and risk management, investor relations, mergers and acquisitions and the company´s sustainability activities.
Strategy, talent, ICT and digital will manage the company-wide strategy, internal stakeholder communication, and human resources activities. It will also oversee the company’s information and communication technology infrastructure as well as drive development of connected processes, services and business models.
Technology will manage core company-wide technology programs including a stronger focus on automation and electrification.
Supply chain will coordinate company-wide procurement, manufacturing and quality activities ensuring leverage of scale, sharing of best practices, network optimization as well as continued application of Industry 4.0 concepts.
High Growth Markets: Asia, Middle East and Africa (AMEA) and South America (SA) will manage and coordinate regional sales, distribution and business activities across segments for those regions and will manage the company’s joint ventures and strategic alliances locally.
Aftermarket Solutions will focus on global parts, technical service and service across the operating segments. While primary profit and loss responsibilities will reside within the respective operating segments, as will the commercial realization, the Aftermarket team will focus on development and deployment of aftermarket concepts.
The functional leaders and GEC members are:
Finance, M&A and sustainability – Max Chiara will continue to serve in his previous roles as chief financial officer, a role he has held since 2013, and chief sustainability officer, a role he has held since 2016.
Strategy, talent, ICT and digital – Andreas Weishaar, chief strategy, talent, ICT and digital officer joins the company with a background having served at AGCO and Welbilt in similar roles.
Technology – Alan Berger, former chief technical officer, will assume the role of chief technology officer for the Company.
Supply chain – Tom Verbaeten, former chief manufacturing officer, will assume the role of chief supply chain officer.
High growth markets AMEA – Stefano Pampalone, former COO APAC, will becomes General Manager Asia, Middle East & Africa (AMEA) and will be responsible for all joint ventures and strategic alliances.
High growth markets SA – Vilmar Fistarol, former COO Latin America, is now general manager South America.
Aftermarket Solutions– Luc Billiet, former president parts and service, will becomes general manager Aftermarket Solutions.
The Global Executive Committee will be advised as appropriate by legal, internal audit, compliance, and corporate communications.