IVECO Trucks is one of the most iconic heavy-duty vehicle manufacturers in Australia. The company was formerly known as International Harvester and International Trucks. It was established in 1902 and set up a production facility at Dandenong in 1952.
The Dandenong factory has produced over 230,000 trucks to date. IVECO Trucks Australia handles about 600 direct jobs in the country. It also creates several opportunities for suppliers of aftermarket parts for European trucks.
History and Ownership of IVECO
IVECO was officially incorporated in 1975 after the merger of five European brands. In 1992 IVECO took over International trucks Australia and formed IVECO Trucks Australia Limited in 2000. Fiat Industrial was formed in 2011 and incorporated IVECO, CNH, and FPT Industrial. CNH merged with Fiat Industrial in 2013 to form CNH Industrial.
CNH Industrial has emerged as a global leader in the capital goods sector. The company now holds significant assets in the agricultural, construction and commercial vehicles industry. CNH’s brands include IVECO, Heuliez Bus, FPT Industrial, New Holland, CASE, and Magrius.
Restructuring of IVECO’s Parent Company – CNH Industrial
IVECO’s parent company, CNH Industrial is separating its On-Highway and Off-Highway business interests into two companies. The company announced this move as part of its five-year “Transform 2 win” business Plan.
The Off-Highway business will cover CNH Industrial’s agriculture, construction, and specialty assets. The On-Highway business includes the company’s commercial vehicle and powertrain assets.
CNH will distribute its brands according to their designations. Brands like New Holland Agriculture and CASE IH will join the ‘Off-Highway’ business. The other brands like IVECO, Heuliez Bus, and FPT Powertrain will join the ‘On-Highway’ business.
CNH Industrial’s restructuring is a strategic move to optimize profitability and brand synergy. The emerging trends in the heavy-duty vehicle industry are varied for the Off-Highway and On-Highway business groups.
Also, varied customer and regulatory requirements impact the two groups differently. This means that operating as one entity would hinder the development of each sector. Separating the businesses would give each brand a better chance of success.
IVECO and Nikola’s Collaborative Partnership
The Nikola Motor Company is a key player in the zero-emission vehicle industry. However, five years after it started, Nikola still lacks the infrastructure to scale its operations globally.
In mid-2019, Nikola expressed interest in developing strategic partnerships with established heavy-duty vehicle manufacturers. The partnership would enable the Nikola Motor Company to expand into Europe.
CNH Industrial is investing $250 million in the Nikola Motor Company to secure a partnership with IVECO. The investment will be issued in two forms, $100 million in cash and $150 million in kind. CNH’s in-kind investment covers manufacturing, engineering, and other technical services.
In turn, CNH Industrial will benefit from Nikola’s proven hydrogen fuel cell technology. CNH has a strong commitment to developing zero-emissions technology in Europe. The company has been actively involved in the development of Europe’s Natural gas refueling network.
It is not yet clear how CNH’s new structure will affect IVECO Trucks Australia. However, moving some of Nikola’s production activities to Dandenong could do wonders for the zero-emission trucks industry down under.