Fiat Industrial

Fiat Industrial S.p.A. was an Italian industrial holding company created by the demerger of most of Fiat S.p.A.'s businesses that were not directly related to passenger automobiles. It began operating as a separate listed company on 1 January 2011, when each existing Fiat S.p.A. share was converted into one Fiat share and one Fiat Industrial share. The restructuring separated Fiat's automobile activities from its commercial-vehicle, agricultural-equipment, construction-equipment and industrial-powertrain operations. The company served primarily as a corporate structure for three major activities. Iveco supplied trucks, buses, specialty vehicles and related commercial-vehicle products. CNH Global, in which Fiat Industrial held an 89.3% stake, covered agricultural machinery and construction equipment through brands and product families associated with tractors, combines, loaders and other heavy equipment. FPT Industrial represented the industrial and marine engine business formerly associated with Fiat Powertrain Technologies, supplying powertrains for commercial vehicles, agricultural machinery, construction equipment, marine applications and other industrial uses. Fiat Industrial was led by Sergio Marchionne, who was also chairman of Fiat S.p.A. and chairman and chief executive of Chrysler Group LLC. Its creation reflected a strategic effort to give the non-automotive businesses a more distinct identity and capital-market profile while retaining their relationship with the wider Fiat group. Exor, the holding company controlled by the Agnelli family, remained the largest shareholder, with an approximately 30% interest around the time of the demerger. The company also received recognition in sustainability-focused equity benchmarks when it entered the Dow Jones Sustainability World and Europe indexes in September 2011 as an Industrial Engineering sector leader. Fiat Industrial was ultimately a transitional corporate entity rather than a long-term standalone brand. On 29 September 2013, Fiat Industrial and CNH Global N.V. merged to create CNH Industrial N.V., incorporated in the Netherlands. Under the transaction, Fiat Industrial shareholders received one CNH Industrial common share for each Fiat Industrial share, while CNH Global shareholders received 3.828 CNH Industrial shares for each CNH Global share. CNH Industrial was subsequently listed in New York and Milan. Fiat Industrial therefore ceased to exist as an independent company, while its principal operating businesses continued within the CNH Industrial group. Its historical importance lies in the formal separation and later consolidation of Fiat's industrial businesses, rather than in consumer-facing products sold under the Fiat Industrial name itself.

Fiat Industrial emerged from a major reorganization of Fiat's corporate structure at the beginning of 2011. Fiat S.p.A., the parent of the Fiat Group, separated most businesses not directly connected with passenger automobiles into a new company. The resulting entity was Fiat Industrial S.p.A., while the remaining Fiat company concentrated more directly on automobile-related activities. The separation became effective on 1 January 2011. Existing Fiat S.p.A. shareholders received one Fiat share and one Fiat Industrial share for each share previously held. This arrangement gave Fiat Industrial its own shareholder base and listed-company identity while preserving substantial continuity with the former group. Exor, the Agnelli-family holding company, was the largest shareholder, with an approximately 30% stake around the time of the demerger. Fiat Industrial's portfolio brought together businesses serving professional and industrial customers. Iveco formed the commercial-vehicle core, with trucks, buses and specialty vehicles. Fiat Industrial also held an 89.3% stake in CNH Global, whose operations covered agricultural and construction equipment. A third pillar was FPT Industrial, comprising industrial and marine activities that had previously been part of Fiat Powertrain Technologies. These businesses gave the company exposure to freight transport, farming, construction, engine manufacturing and marine propulsion rather than to conventional passenger-car retailing. Sergio Marchionne served as chairman of Fiat Industrial while also holding senior leadership roles at Fiat S.p.A. and Chrysler Group LLC. His simultaneous responsibilities reflected the close strategic connection between Fiat Industrial and the wider Fiat organization during the period of separation and subsequent consolidation. In September 2011, Fiat Industrial entered the Dow Jones Sustainability World and Europe indexes as a leader in the Industrial Engineering sector, an indication that the company was also being evaluated as a diversified industrial enterprise rather than solely as a vehicle producer. The standalone structure was short-lived. Fiat Industrial and CNH Global N.V. agreed to combine their businesses, and the merger was completed on 29 September 2013. The successor was CNH Industrial N.V., incorporated in the Netherlands. Fiat Industrial shareholders received one CNH Industrial common share for every Fiat Industrial share, while CNH Global shareholders received 3.828 CNH Industrial shares for every CNH Global share. CNH Industrial was subsequently listed on the New York Stock Exchange and the Milan stock exchange. The merger ended Fiat Industrial's existence as an independent listed company. Its operating businesses and industrial-market capabilities continued within CNH Industrial, making Fiat Industrial best understood as a bridge between Fiat's pre-2011 conglomerate structure and the later CNH Industrial group.

• 2013

  Formation of CNH Industrial

  [1]Fiat Industrialen.wikipedia.org

  On 29 September, Fiat Industrial and CNH Global merged into CNH Industrial N.V., ending Fiat Industrial's independent corporate existence.

• 2011

  Demerger from Fiat S.p.A.

  [1]Fiat Industrialen.wikipedia.org

  On 1 January, Fiat's non-automotive industrial activities began operating through Fiat Industrial, and each former Fiat S.p.A. share was converted into one Fiat share and one Fiat Industrial share.

• 2011

  Sustainability-index inclusion

  [1]Fiat Industrialen.wikipedia.org

  In September, Fiat Industrial entered the Dow Jones Sustainability World and Europe indexes as a leader in the Industrial Engineering sector.

A diversified industrial group focused on commercial transportation, agricultural and construction machinery, and industrial and marine powertrains. Fiat Industrial functioned mainly as a holding and reporting structure for established operating businesses rather than as a consumer-facing product brand.

• Commercial vehicles

  Iveco commercial vehicles

  Iveco was the commercial-vehicle business within Fiat Industrial. Its portfolio included trucks, buses and specialty vehicles for freight transport, public transportation and other professional applications. The business addressed fleet and institutional customers rather than ordinary passenger-car buyers and represented one of the group's main routes into road transportation.

• Agricultural machinery

  CNH agricultural equipment

  Through its majority stake in CNH Global, Fiat Industrial was exposed to agricultural machinery used in farming and crop production. The equipment activities included tractor and harvesting-machine operations associated with CNH's agricultural portfolio. Fiat Industrial held an 89.3% stake in CNH Global during its standalone period.

• Construction equipment

  CNH construction equipment

  CNH's construction-equipment activities formed another major part of Fiat Industrial's industrial portfolio. They served construction and infrastructure users with heavy machinery and related equipment. These operations complemented the group's agricultural machinery and commercial-vehicle businesses and later became part of CNH Industrial.

• Industrial and marine engines

  FPT Industrial powertrains

  FPT Industrial comprised the industrial and marine activities formerly associated with Fiat Powertrain Technologies. Its scope included engines and powertrain systems for industrial, commercial-vehicle, agricultural, construction and marine applications. The business extended Fiat Industrial beyond complete vehicles and machinery into the supply of propulsion technology.

• 2013

  Merge Fiat Industrial with CNH GlobalM&A

  Background

  Fiat Industrial and CNH Global pursued a combination to consolidate the group's agricultural, construction, commercial-vehicle and industrial operations in a new corporate structure.

  Action taken

  The companies merged on 29 September 2013 to form CNH Industrial N.V. Fiat Industrial shareholders received one CNH Industrial share for each Fiat Industrial share, while CNH Global shareholders received 3.828 CNH Industrial shares for each CNH Global share.

  Aftermath

  Fiat Industrial ceased to exist as an independent company, and CNH Industrial was subsequently listed in New York and Milan.

  Source

• 2011

  Separate Fiat's industrial activities from its automobile businessStrategy

  Background

  Fiat sought to give its non-automotive industrial businesses a distinct corporate and capital-market structure while retaining their connection to the broader Fiat group.

  Action taken

  Most activities not directly related to automobiles were placed in Fiat Industrial, and Fiat shareholders received separate Fiat and Fiat Industrial shares.

  Aftermath

  The restructuring created a standalone company containing Iveco, the CNH stake and FPT Industrial, but the entity was later combined with CNH Global.

  Source

1. 1Fiat Industrialen.wikipedia.org