Elkann’s Exor will sell Iveco (CNH) trucks to Faw’s Chinese
The trucks and buses of Iveco (Cnh group controlled by Exor of the Agnelli family) could be sold to the Chinese car group Faw. Facts, numbers, rumors and scenarios
Iveco's trucks and buses could be sold to the Chinese car group Faw. Cnh Industrial, controlled by Exor, the holding company of the Agnelli family, explained that the negotiations are at a preliminary level.
THE NEGOTIATION BETWEEN CNH AND FAW ON IVECO
The negotiations to sell Iveco to the Faw Chinese have therefore reopened. The confirmation came yesterday from CNH Industrial after the Reuters agency announced the resumption of talks between the two groups, which were interrupted in July last year.
WHAT IS HAPPENING ON IVECO
A stop caused by the 3 billion purchase offer made by the company which is based in Changchun and builds heavy trucks under the Jiefang brand. This sum is deemed insufficient by CNH, a group now under the leadership of the new CEO Scott W. Wine who has taken office in recent days.
THE SIGHTS OF THE CHINESE FAW
“Faw wants to expand beyond the borders of China, it has set its sights on the Iveco commercial sector, from buses to trucks, and on the minority share of the CNH company that produces engines, Ftp Industrial. This is the scope of the negotiation that has resumed. The special and military means remain outside ”, writes Repubblica .
CURRENT IVECO COLLABORATIONS IN CHINA
Iveco currently produces vans in China with another public company: Saic Motor. Also according to Reuters , Iveco is also being targeted by another Chinese group: Shandong Heavy Industry Group, which has made an offer of 3.5 billion euros.
REFLECTIONS IN THE BAG
In Piazza Affari the news had positive repercussions: also frozen due to excess of the rise, the CNH Industrial stock closed with a jump of 6.64% to almost 11 euros, on the highest levels since March 2018, but still below the record of 12 , 48 euros reached a month earlier.
PREVIOUS
There had already been talks about a negotiation with Faw for Iveco trucks and buses last summer, but now the Chinese group, which aims to expand into international markets with its Jiefang brand, would have presented a better offer.
THE EFFECTS FOR THE ESTABLISHMENTS IN ITALY
The Iveco Daily coming out of the Suzzara (Mantua) factory and the Eurocargo from the Brescia plant could soon speak Chinese. As well as the engines manufactured by Fpt Industrial in Turin and Foggia, writes the Corriere della Sera .
TURNOVER OF IVECO
The highlight, therefore, is represented by the trucks and buses – excluding, therefore, special and defense vehicles – which represent the majority of Iveco's turnover (10.4 billion dollars in 2019).
THE ALTERNATIVES TO THE PLAN
The possible sale could be an alternative to the plan presented by CNH Industrial in September 2019, on the Capital Market Day in New York: the idea was to split in two and set up an autonomous company, listed on the Stock Exchange, of buses and of Iveco commercial vehicles and Fpt engines.
The operation, which should have involved 17,000 workers in Italy, was scheduled for the beginning of this year, but the president Suzanne Heywood explained, during the presentation of the accounts for the third quarter of 2019, that it will postpone due to the Coronavirus .
THE JOINT VENTURES
On the other hand, Iveco's joint venture with Nikola continues: it is completing work on the first battery electric prototypes of the Nikola Tre. By the fourth quarter of 2021, the assembly plant in Ulm, Germany will begin manufacturing Nikola Tre. A similar process will start shortly thereafter with the hydrogen fuel cell truck, production of which will begin at the end of 2023.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ecco-exor-di-elkann-vendera-i-camion-di-iveco-cnh-ai-cinesi-di-faw/ on Thu, 07 Jan 2021 08:25:01 +0000.