CNH and SRC Agree to Form Joint Venture

CNH Global, the international construction equipment company based in Amsterdam, has agreed to develop a remanufacturing operation and services company as a joint venture with Springfield Remanufacturing Corp. (SRC), Springfield, Mo. The joint venture, called CNH Reman, will bring together CNH Parts & Service product expertise and access to equipment and dealer networks with SRC’s remanufacturing operations, capabilities and expertise, according to a CNH press release.

Case IH, Case Construction Equipment, New Holland Agriculture, New Holland Construction, Kobelco and Fiat Powertrain Technologies (FPT) dealers will be able to provide customers with a larger line of remanufactured products that can lower total cost of ownership (TCO).

"We see remanufacturing continuing to grow in importance in North America, so CNH is expanding its long-term relationship and partnership with SRC,” says Eric Bippus, vice president of sales and marketing, CNH Parts & Service, North America. “Together with SRC, we are positioned to reach aggressive growth targets designed to serve our dealer and customer needs and meet investor expectations."

According to the companies, dealers and customers will realize several advantages with an expanded selection of remanufactured products, including:

• Remanufacturing gives customers the opportunity to purchase replacement assemblies and components that are just like new, sometimes better than new due to engineering enhancements, at a reduced price and with a competitive warranty.

• Reman assemblies mean increased efficiencies and productivity due to reduced repair times.

• Reman is an important way to support sustainable development, which aligns with CNH’s commitment to environmental responsibility.

“Through this agreement, we will be able to better focus on [remanufacturing] and offer customers more breadth and depth across all our product families,” says Bippus.