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CNH Parts & Service, SRC to Form Joint Venture

Wed August 12, 2009 - National Edition
Construction Equipment Guide

CNH Global N.V. has agreed to develop a full-scale remanufacturing operation and services company as a joint venture with Springfield Remanufacturing Corp. (SRC) to be called CNH Reman. The partnership brings together CNH Parts & Service product expertise, access to equipment and dedicated dealer networks with SRC’s remanufacturing operations, capabilities and expertise.

Case IH, Case Construction Equipment, New Holland Agriculture, New Holland Construction, Kobelco and Fiat Powertrain Technologies (FPT) dealers will be able to more readily provide customers with a much larger line of remanufactured products that can lower total cost of ownership (TCO).

“We see remanufacturing continuing to grow in importance in North America, so CNH is expanding its long-term relationship and partnership with SRC,” said Eric Bippus, vice president of sales and marketing, CNH Parts & Service, North America. “Together with SRC, we are positioned to reach aggressive growth targets designed to serve our dealer and customer needs and meet investor expectations.”

Dealers and customers will realize several advantages with an expanded selection of reman products:

• Remanufacturing gives customers the opportunity to purchase replacement assemblies and components that are just like new, sometimes better than new due to engineering enhancements, at a reduced price and with a competitive warranty.

• Reman assemblies mean increased efficiencies and productivity due to reduced repair times. This is something that both customers and dealers appreciate, especially during peak seasons when downtime is especially costly.

• Reman is an important way to support sustainable development, which aligns with CNH’s commitment to environmental responsibility.

“Through this agreement, we will be able to better focus on reman and offer customers more breadth and depth across all our product families,” said Bippus.

SRC has a long history with CNH. The corporation began in 1983, after employees purchased an International Harvester remanufacturing plant. Over time, SRC has continued its relationship with CNH. CNH will expand its current partnership with SRC in developing this full-scale remanufacturing and services company.

“For us, this is like coming home again,” said Jack Stack, president and CEO of SRC. “The creation of CNH Reman takes us back to our origins, and we’re excited to partner with CNH to provide a more robust line of reman products.”

“The opening, earlier this year, of the new CNH Reman Technical Center that delivers personalized phone support to dealers who offer CNH Original remanufactured parts was the first step. Now it’s time to further expand and cement our relationship with CNH,” added Stack.

The agreement signifies CNH’s commitment to remanufacturing and positions the company for continued growth through more cost-efficient manufacturing and capturing sales through the growing trend of product remanufacturing.

CNH plans to improve and increase product coverage across five product lines so that dealers can better serve their customers — engines and components; drivetrain and components; rotating electrics; electronics; and hydraulics.

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