CNH name comes up in Fiat/Chrysler deal

jimg · May 4, 2009

Thought you all might be interested....

Fiat May Sell CNH to Fund Chrysler, Bernstein Says (Update2) - Bloomberg.com

justatractorguy · May 4, 2009

That idea was floated by outside analysts and was already disregarded late last week.

Here's an article.

The quote: Executive Sergio Marchionne, was blunt in his rejection of that idea, saying that selling such high-value assets for the car side is really trying to put the donkey ***-backwards because the problematic business here is the car side."

froggy · May 4, 2009

Thanks, both are interesting articles.

EquipmentJunkie · May 11, 2009

I agree with the Bloomberg article and think that it is funny that Marchionne responded within 24 hours. In fact, I read Marchionne's rebuttal in Diesel Progress before the Reuters article the other week. I have said for years that Fiat will come to the fork in the road and need decide whether it is an auto company, or an equipment company.

What will Fiat choose? I simply suggest which is more glamorous red sports cars, or red tractors?

Gator6x4 · May 11, 2009

EquipmentJunkie said:
I agree with the Bloomberg article and think that it is funny that Marchionne responded within 24 hours. In fact, I read Marchionne's rebuttal in Diesel Progress before the Reuters article the other week. I have said for years that Fiat will come to the fork in the road and need decide whether it is an auto company, or an equipment company.

What will Fiat choose? I simply suggest which is more glamorous red sports cars, or red tractors?

I think Fiat came to the fork in the road several years ago, when GM paid a two billion dollar penalty to keep from buying the Fiat automotive manafacturing facilities.

CNH sales account for 20% of Fiats annual sales so I don't think they would consider selling the "Cash Cow".

For some informative reading on this company visit the site below. Chrysler in my opinion had better be very careful in business dealings with Fiat.

Fiat - Wikipedia, the free encyclopedia

EquipmentJunkie · May 12, 2009

Unfortunately, Chrysler/Cerberus doesn't have much say in it anymore. It is the US Government who already made the decision. Maybe the marriage with Fiat is why the UAW is looking to dump their stake in Chrysler ASAP.

Chuck_Lind · May 13, 2009

Since Fiat is buying Chrysler...maybe Fiat will strike up a deal to have Cummins supply diesel engines for the New Holland.

Wouldn't that be something?

Never happen, though.

slowzuki · May 13, 2009

Fiat already puts the Iveco 3.9 in a pile of stuff, I have heard it is a loosely based Turkish copy off the Cummins 3.9.

EquipmentJunkie · May 13, 2009

Actually, the present B-series Cummins was a joint development effort between Iveco (Fiat trucks), CNH (Fiat-owned New Holland & CaseIH), and Cummins. The joint development deal was recently split apart after quite a few years...maybe to keep things neat and clean for mergers and acquisitions?

EddieWalker · May 13, 2009

Chuck_Lind said:
Since Fiat is buying Chrysler...maybe Fiat will strike up a deal to have Cummins supply diesel engines for the New Holland.

Wouldn't that be something?

Never happen, though.

CNH has been using Cummins engines in their tractors for years. My dozer has a Cummins 8.3 in it and allot of other Case equipment has either the 8.3 and 5.9 in them. Same with New Holland dozers. Now that everything is Tier III, it's all changing, so I don't know what the newest engines are.

As for Fiat selling off CNH to fund Chrysler, I think that would be the wrong move. Why they are buying Chrysler when Daimler couldn't make a go of it makes me question the wisdom of the whole thing. Kind of makes me wonder what the behind the scenes deal is and what the real motive is for Fiat in this?

Eddie