IVECO and CNH Industrial in Russia forever

CNH Industrial and IVECO optimistic about the Russian market

Alexander Klimov, photos of the author and CNH Industrial

  The final press conference of the company IVECO, part of the multinational group CNH Industrial was the results of the activities of the company in 2017, and also announced its forecasts for the Russian market by 2018. Was also discussed and the data on the activities of the group companies of the CNH Industrial in Russia and in the world.

The press conference was attended by the head of mission of CNH Industrial in Russia and Belarus Fabrizio Cepollina, business Director of IVECO in Russia and Belarus Massimiliano Perry, business Director for spare parts CNH Industrial/IVECO Mihail Murakhovsky, as well as marketing Director of IVECO Alex Listen.



Today is the first in the world in the production of agricultural machinery and the 4th in the world in production of industrial machinery and equipment company CNH Industrial evaluates the ability of localization of production of light commercial vehicles IVECO in Russia in accordance with applicable law. The company operates in 180 countries with the appropriate geographical and product diversification, which allows it to take a strong position on the markets of developing countries. It also stands as a world leader in the development and production of engines with a significant share of diesel engines for low-, medium - and heavy-duty vehicles.
The group CNH Industrial includes 12 brands, 64 of the plant and 50 research centres which employ 5950 employees. The total number of employees is 63 000 people. Total Group revenue is $27.4 billion (+10% by 2016) and an operating profit of $1,662 million (+6,1%) of which R & d spent $900 million. Profit percentage was 5.8% (+0,6%) and loose cash $1,289 million (+23%). The group owns 7719 valid patents.

By segment agricultural equipment CNH Industrial revenues grew 10% to $11,12 billion By region revenues were distributed as follows: area EMEA with 36% NAFTA 34%, LATAM and APAC – 15%. By commodity groups for tractors accounted for 58% of revenue, harvesters – 21% and others – 21%. Last year, CNH Industrial has won the honorary title of "Machine of the Year 2018" ("Tractor 2018" in the category of medium-sized tractors). In addition, were received innovation award in the category of Good Design "the Best design" rim3.ru/comauto/news/robotraktor-i-pogruzchiki-case-poluchili-nagradu-good-design/ – per robotrac Case IH and new MACV series front loaders for Case G-serie.
  
The commercial vehicle segment's revenue climbed 9% to 10,415 billion By region revenues were distributed as follows: EMEA – 82%, APAC – 10%, LATAM – 8%. By commodity groups for the trucks, had 77%, buses – 15%, and for special vehicles 8%. In 2017, the Group CNH Industrial (in the face of the company IVECO) won a victory in European competition gas development "project of the year 2017" with the new freight model Iveco Stralis NP, and the van Daily became the "Van of 2018" (Van of the Year 2018). Engine FPT Industrial Department held a presentation of the gas 460 HP engine Cursor 13 and also set a world speed record on water with the engine, the Cursor 16. Unit WCM – new awards won a bronze medal New Holland (USA) and Serves (Turkey). Total at the end of 2017 won 1 gold, 15 silver and 24 bronze.

Mr. Fabrizio Cepollina reported that the Group CNH Industrial has fulfilled the targets in 2017, while maintaining market share in all three business segments – construction and agricultural machines, commercial transport, and additionally, has launched several long-term projects that will strengthen the position of the group and to increase sales in Russia. He noted that now the group has concentrated on receiving preferences at the conclusion of the investment contract on the localization of the production machinery brands Case IH and New Holland Agriculture for agricultural purposes. The Group annually raises localization level to existing in the city of Naberezhnye Chelny plant CNH Industrial.

On the Russian market, the Group increased revenue by 58% to $395,8 million On commodity groups, it was distributed as follows: commercial vehicles brought 39%, agriculture – 32%, spare parts – 19%, construction machinery – 9%, and engines – another 1%. Market share of the product Group was the largest in the segment of tractors, saving 20% in the segment of harvesters accounted for 18% (-14%), in the segment of construction equipment share was 11.1% (+1,6%) and in the segment of commercial vehicles is 1.5% (-0,1%).

According to the Group CNH Industrial the Russian market of commercial vehicles with GVW of 3.5 tons increased to 137 thousand (+36%), demonstrating positive growth in all component segments. Including the share of light commercial vehicles (3,5–7,49 t) was 58.8 million (+17.1 percent). The share of medium vehicles (7,5–15,9 t) had of 16.08 million (+15.3 per cent) and the proportion of heavy (over 16 tonnes) – to 60.98 million (+71.2 percent). The share of Russian brands in the market of commercial transport in 2017 accounted for 64.9 per cent (-5,4 p. p. 2016), European brands occupied 29,5% (+5.4 percentage points), and Asian and 5.6% (0% PP), thus, the market share directly flowed from Russian producers (89% of production for the industry as a whole) to the European, which became the drivers of growth. Check IVECO trucks made up 2 thousand (+24%), but the market share remained at 1.5%, and registration of buses, amounting in the whole market of 11.6 million (+10%), of which the share of IVECO had 218 units (-65%), while market share dropped to 1.9% (-4 PP).

Key fleet sales 2017 for IVECO steel company contracts "X5" in 300 units of the model Eurocargo; with "Velikoluksky meat plant", which received 220 trucks of different models; the supply of 200 units. series Daily for the company "Santa Braemar", "Autopac" and SPAR. In addition, in 2018 the contract with "Mail of Russia" for the supply of 80 heavy trucks Stralis series. The main emphasis was on low cost of ownership.

Already since 1993, IVECO came to release his hard line directly on the territory of Russia. This was organized by the joint venture OOO "IVEKO-AMT" (up to 2009 – LLC "IVEKO-UralAZ"), located in the Chelyabinsk region, which manufactured trucks under license from IVECO, adapted to difficult operating conditions, taking into account individual needs of customers. So, "IVECO-AMT" offers more than 1,500 options for the Trakker and Eurocargo. All trucks and chassis, produced by LLC "IVEKO-AMT" certified products of Russian origin. As the cars are fully prepared to perform the most complex challenges when operating in harsh climatic conditions, they are willing to use municipal, fire and rescue service of the Russian Federation and oil and gas companies. Products CNG, produced by "IVECO-AMT", even included in the list are subsidized by the Ministry of industry and trade of the Russian Federation. In early 2018, the company has expanded its product portfolio with a robust range of off-road vehicles IVECO Astra HD9. The truck with the wheel formula 8x8, capacity 39 t come with engine capacity of 560 HP and adapted for operation at a temperature of -45°C. Maximum weight of the truck is up to 65 ton (weight distribution 11+11+21,5+21,5 t). The first trucks of this series have already been tested by such reputable clients as diamond-mining company "ALROSA".



Optimism-2018
The group CNH Industrial assumes that the market in 2018 will continue to rise due to projected economic growth and further modernization of the fleet. The overall growth of the commercial vehicles market (GVW 3.5 tons) will be about 8-10% to 145-150 thousand IVECO sales will amount to approximately 2.5 thousand (+500 units by 2017). The brand market share will rise to 1.7% (+0.2 percentage points). The main growth drivers will be new niche segments in the product line, investment in infrastructure and processes will give customers better services, new service packages and telematics will optimize total cost of ownership.


  According to Massimiliano Perry, in 2018, priority will be for the IVECO heavy range. "This year we present a special version of the car Stralis 4x2 high sleeper cab, designed to work in the most difficult conditions in Russia. The new version of the Stralis got a robust 13-liter Cursor 13 engine with 480 HP with a turbocharger increased power, the specially reinforced frame and telematics + DSE, which helps to effectively manage, control operating costs of the vehicle and gives the driver the ability to maximize the capabilities of the truck. To this end a training for the driver and the "Golden contract" for telematics. In confirmation of the stated reliability IVECO increased warranty with free on THE powerplant up to 3 years or 450,000 km. Another novelty in the line will be a gas version of the Stralis NP power up to 460 HP in the configuration of LNG and a range of up to 1,500 km (version with power of 400 HP has a power reserve of up to 1400 km). "The leader in performance and environmental friendliness are waiting for the Russian clients in April of this year, methane tractor Stralis Cursor 13 test roads of Russia", – said Massimiliano. This will be "the Days of IVECO Stralis", which will begin on June 1 and will take place in 10 cities in 20 dealerships, where we will demonstrate the full line of IVECO.



  In the heavy segment, IVECO relies on the model of the Trakker 6x6 720, manufactured by JSC "IVECO-AMT" (performed by the truck tractor) not only is reliable, but is considered one of the best in class total cost of ownership. Customers will be able to try a Trakker from official dealers, taking it for a test drive since April. The machine is equipped with engine Cursor 13 in iteration 450 HP and ΜM=2200 N•m. the total combination weight is 97 so the Car is adapted for operation at temperatures down to -45°C.



In the average scheme in a joint venture "ST Nizhegorodets" this year we started producing a 9.5-metre 76-seat (30 seats, and seats for transporting people with reduced mobility) buses Nizhegorodets STN-700 on the chassis IVECO Eurocargo (engine 6.7-litre, 250 HP, 850 N•m).



  More famous today small buses – the Russian 28-local "Nizhegorodets" VSN-700 (3.0 l, 146 L.C., 350 N•m), as well as the new Belarusian bus NEMAN-4202 series on the chassis of the IVECO Daily in three versions: the city of Neman-420211-511 (for up to 44 passengers, 20 seated), intercity and tourist Neman-420234-511 with a capacity of 28 passengers. Bus Neman-4202 with a 3-liter turbodiesel IVECO F1CFL411 170 HP class Euro-5.



  in addition, on average a series of Eurocargo trucks ("Truck 2016") total weight 6-19 t for Russia the proposed engine producing 205 HP, version CNG (the range of up to 285 km) and 4x4, and for corporate customers special conditions. By the way, the version Eurocargo CNG can save up to 31% in the city, 23% in the suburbs and 16% in long-distance riding.



  In light colours, the company has updated the IVECO Daily. The model is again awarded the prestigious title of "international van of the year 2018" received in addition to their famous strength (total weight increased to 7.2 MT) and reliability, innovative power units with power up to 205 HP level Euro 6, making the car cost effective for users and environmentally friendly for the environment.



In the series the technology of Daily Business Up (with the ability to upgrade telecommunication equipment), and also implemented free warranty 2 years or 100 000 km. in addition, the competitive price is already accounted for trail-in, and recycling. The gas version of the Daily Natural Power (CNG) with a 136-horsepower engine drives up to 530 miles on one tank and allows you to save on fuel up to ₽150 000.



  In 2018, special attention will be given to IVECO after-sales service. The company updated the portfolio of after-sales services Stralis MY 2018 in Russia, which will offer owners of trucks Stralis simplified scheme to reduce the operational maintenance costs of the fleet. Now at the conclusion of the contract, you can choose a specific set of components in accordance with the needs of the Park or a variant of "no worries", that is, to extend terms of contract for the whole car as a whole.

"This year will be an updated model not only gamma, but also point of sales. By the end of 2018, 75% of dealerships in Russia will be to meet the standards of IVECO. In addition, special attention will be paid to the customer satisfaction index CSI-sales services. And now after each visit to any of the service stations representatives contact IVECO directly with the client to ensure that our services meet the expectations of the owners. We want to be perceived as a reliable business partner in the world of sustainable transport," said Massimiliano Perry. In 2018 it is planned to double the number of respondents clients (up to 6,000).

Drivers of the future
Company IVECO has also offered their vision of the future, which is a gradual transition from the diesel engine instead which will come as technology for alternative fuels (NGV including CNG and LNG) or biofuels (ethanol and biodiesel) and the use of the actuator, starting with hybrids and ending with electric cars and hydrogen plants.



An interesting classification of these types of power plants, proposed by IVECO.
So, according to it, the battery electric drive is suitable only for urban transportation (for which, however, according to this classification, suitable for all types of fuel and drive), but the main transportation on this type of drive is not possible (respectively, according to the same classification such as electrotractor Tesla Sema should not exist in principle), but liquefied methane (LNG and Bio-LNG) operation of mainline trains, even very promising. Regional transportation will be advantageous to operate the chassis for CNG and Bio-CNG on highway and light off – road hybrid system.



background:
The company belongs to a corporate group IVECO CNH Industrial N. V. is a world leader in the production of goods for industrial purposes, was on the new York stock exchange (NYSE: CNHI) and on the Electronic stock exchange Borsa Italiana (MI: CNHI). IVECO company develops, manufactures and markets a wide range of light, medium and heavy commercial vehicles, off-road trucks and special vehicles, e.g., off-road runs.



A wide range of IVECO products involves a series of Daily total weight from 3 to 7.2 tonnes, the Eurocargo series mass 6-19 t, heavy (weighing more than 16 tons) the series Trakker off-road and the main series Stralis. In addition, under the brand IVECO Astra offers off-road trucks and special vehicles.

The number of employees of the IVECO is more than 21 000 people worldwide. It has factories in 7 countries of Europe, Asia, Africa, Oceania, and Latin America, where there are modern high-tech production of cars. Global sales network has 4.2 thousand dealerships and service centers in more than 160 countries around the world allows to provide technical service and support at any point where equipment is operated by IVECO.