Chrysler 2001 Annual Report Download - page 49

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of its overall manufacturing organization. This will also entail a
major reallocation of production among the remaining plants.
Furthermore, the number of Case and New Holland product
platforms will be reduced from more than 100 to about 60.
In purchasing and logistics, significant efficiencies are expected
to come from economies of scale, a strong rationalization of
the company’s supply base, a reduction in the overall number
of parts and coordination of global logistics activities. Relevant
savings are expected to come from selling, general and
administrative expenses by combining and managing globally
functional departments.
One of the greatest opportunities offered by the merger is the
development and manufacture of agricultural and construction
equipment on global platforms. While designing and building
products with features that clearly differentiate them from other
brand models, CNH Global will realize significant synergies
by applying approaches that proved highly successful in the
automotive industry: designing and engineering these products
on platforms that will share some level of common parts and
components.
The first of these products are now being sold as part of
distinct brand product lines through separate distribution
networks, allowing CNH to tailor them to conform to brand
expectations that fit the needs of its customers and to
improve its services and expand the range of products
and services offered globally. However, there will be at the
same time profit opportunities for CNH by cross-selling of
some product lines.
PRODUCT INNOVATION
During the year, CNH introduced over 100 new models,
upgrading and significantly improving versions of many
existing products, as well as introducing several completely
new major products.
In the Agricultural Equipment segment:
❚New Holland successfully introduced the new TJ tractor
series at the very top of the range, replacing its divested
4WD tractor line. The launch of the New Holland TJ tractor
represents the company’s first application of the global
platform strategy, being the counterpart to the Case IH STX
tractor line introduced to rave reviews at the end of the prior
year. In Europe, New Holland launched its all-new flagship
conventional combine harvester, the CX, winning technical
awards across Europe and overwhelming acceptance in the
marketplace. In addition, New Holland launched important
new medium horsepower and compact tractor models in
Europe and North America.
❚Case IH successfully launched a full line of best-in-class
hay and forage equipment, replacing divested products
49
Report on Operations – CNH Global
New Holland CX 860 combine harvester.