CNH Industrial NV’s truck and bus division Iveco Group NV lost money on its first day of trading, which valued the company at about 3.9 billion euros ($4.4 billion). This comes just a few weeks after Daimler AG’s truck division made a similar move.
Iveco shares fell as much as 11 percent to 9.99 euros a share in Milan on Monday, after the company was split off from CNH. The share price had been 11.26 euros. CNH, which is owned by Italy’s billionaire Agnelli family, wants to get more money out of separate agricultural equipment brands like New Holland and commercial vehicles as the industry tries to cut down on pollution.
It’s the idea that there aren’t a lot of things that commercial vehicles and off-road machines have in common that makes the Iveco spinoff possible, Iveco CEO Gerrit Marx said. Businesses on the highway and off the highway were following different trends when it came to getting rid of diesel engines, Marx said.
For trucks, battery-electric and hydrogen fuel-cell powertrains are likely to be the most common, he said. For tractors, biofuels will be the main source of energy, he said.
This comes after talks for a sale to China FAW Group Co. broke down over price and after the Italian government said it would block the deal. CNH first said that the separation would happen in 2019.
It’s a goal for both Iveco and Daimler Truck Holding AG to be able to move faster as independent companies when they switch to electric and hydrogen fuel cell powertrains to meet stricter rules on greenhouse gas emissions. Haulage companies are spending a lot more money to make their diesel engines work better, but they’re opening the door to new competitors like Tesla Inc. and Nikola Corp.
Iveco has teamed up with the U.S. company Nikola to make trucks at its plant in Ulm, Germany. Production was supposed to start late last year for battery-electric heavy-duty vehicles, then for fuel-cell trucks at a later date. In November, Iveco also said that Amazon.com Inc. will get more than 1,000 gas-powered cars from them in Europe.
Consolidation in our industry is over, Marx said. “We want to work with other people more, like we did with Nikola,” he said. To build a digital platform for dealers and customers, Iveco wants a partner in the financial technology field, he told the storey
There are now about 27 billion euros worth of Daimler Trucks in the world. Since trading began on December 10, the company’s stock has risen almost 6%. Mercedes-Benz luxury cars and commercial vehicles have been separated from each other for more than a century. Daimler CEO Ola Kallenius says this is because the future of technology for cars and trucks are going in different directions.
An Italian company called Iveco was started in 1975 by its parent company, Fiat. Iveco was formed to serve the European truck and bus market. During that time, Iveco had five brands, like Fiat Veicoli Industriali, Unic, and Magirus Deutz. If you have five common shares of CNH, you will get one Iveco share for every five CNH common shares that you own. A company owned by the Agnelli family will keep 27 percent of its common shares and 42.5 percent of its voting rights.
Add Comment