FIAT SpA- Parent of CNH-Major Financial Trouble...

JohnMiller3 · Jun 27, 2003

Struggling Fiat SpA to cut 12,300 jobs, shut plants

Some of the companies under the Fiat SpA umbrella:

Toro
Maserati
Ferrari
Fiat
Iveco
CNH Global N.V.

This may have a larger ripple effect... /forums/images/graemlins/frown.gif

MikePA · Jun 27, 2003

Toro 
From the article, "This year, it agreed to sell its Toro insurance unit." It's not the Toro lawn/garden tractor people. /forums/images/graemlins/smile.gif

JohnMiller3 · Jun 27, 2003

/forums/images/graemlins/blush.gif

Ok Mike... I didn't say which one... /forums/images/graemlins/tongue.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/laugh.gif

buckeye · Jun 30, 2003

I assume the ripple effect you mention would include the New Holland the Case IH lines of equipment. It does concern me, as an owner of a New Holland TC-40. Maybe the fact the the "Boomer" line of New Hollands are manufactured by Shibura will make parts available for a long time.

Reading the message boards for stocks and such, it sounds like Fiat has aplan, but I don't know how well it is structured and more importantly, if they have enough time to implement it.

JohnMiller3 · Jun 30, 2003

… the ripple effect…

Hi Jim,

Case & New Holland are one of the first & primary divisions that WILL be affected… /forums/images/graemlins/frown.gif

The “ripple effect”, I’m referring to… are the thousands of vendors that supply/work for Fiat SpA… delayed payment, no payment, no future orders… in other words the “small guys” really get put into a bind and many can go out of business as an indirect result… /forums/images/graemlins/frown.gif/forums/images/graemlins/frown.gif/forums/images/graemlins/frown.gif

Lawncare · Jun 30, 2003

That is one of the MAIN reasons I own John Deere,the longevity of the JD Deere company,I feel they will be around for many years to come,JD Deere is a strong company.I have been very skeptical of CNH[company] for a few years,they have been struggling for quite a while,if CNH were sold I wonder who would be the buyer ?

JohnMiller3 · Jun 30, 2003

...if CNH were sold I wonder who would be the buyer ?...

AGCO... /forums/images/graemlins/wink.gif

I'm sure no matter what happens in the future... we will still have Case & New Holland... perhaps not together (the parts of that company are worth more than the "whole")...

Besides competition is very good for the industry...! (especially for the consumer!) /forums/images/graemlins/smile.gif

buckeye · Jun 30, 2003

Excellent point! Also, the dealers and thier employees would be hard hit. My local NH dealer is great and would hate to see him hurt. However, there are not many AGCO dealers around and he could probably go with that.

Whatever happens, I'm stil glad I bought the TC-40, it is a great tractor.

thcri · Jun 30, 2003

Corporations being bought out is an everyday occurance in the United States. You read about it all the time. In my imagination I would have to believe that CNH has large corporations knocking on the door to buy them out. There is just too many years of history there to just let the line fizzle out. Whether anyone likes it or not, CNH made some good products and still do today. And that means there is future business there also. Will the CNH customers be affected by it. Yes I am sure we will.

But everyone here has to realise, there is not one company including John Deere that is not susceptible to financial trouble. I can remember not too long ago the Waterloo plant laying off an awful lot fo people. At that time everyone worried about John Deere. Whenever a major corporation gets into trouble more than not someone will pick them up. So I wouldn't worry about CNH going under. My personal opinion is they will be around for a long time.

Murph

spencer200 · Jun 30, 2003

A split of the two companies would be a plus for New Holland. Ever since the merger Case has dragged New Holland farther and farther into it hole. Case as a company has not made money for years. New Holland on the other hand has always made money until the merger. Now the management mostly former case employees bleeds the money away from the New Holland side of the business like an open wound that will not heal.