previousnext 5/3/2007

New Holland press conference 

Lorenzo Sistino – New Holland President
Ladies and gentlemen, good morning and welcome to the New Holland stand at SIMA.

I am proud to represent New Holland, a brand of the Fiat Group and one of its strategic assets.

As some of you may know, I joined New Holland this year, having worked in the Fiat Group for the past 20 years, most recently in the Light Commercial Vehicles business where I was President since 2004.

The Fiat Group closed the year 2006 by showing the strength and capability to achieve a complete turnaround.

This success was built on the renewal of the Group’s management team and their belief in the distinctiveness and strength of its brands.

The organisation by brand was one of the key elements of the FIAT turnaround, and New Holland is benefiting from the same “brand organisation” model.

New Holland enjoys the synergies derived from being part of this powerful group:

  • In the development of components with other Fiat Group companies;
  • In the economies of scale achieved by consolidating material purchasing volumes with the other businesses of the Fiat Group;
  • In sharing technical know-how within the Group: for example engines, through Fiat Powertrain;
  • and more

No agricultural competitor can leverage all that.

All this while being totally independent in developing its own identity, strategy and policies to strengthen its business year after year.

New Holland has an impressive heritage spanning more than 100 years of leadership. This powerful past combines many successful brands, each with its own strengths and history.

Building on our legacy, our mission is to be a specialist in all key agricultural customer segments, offering innovative product and service solutions that make a real difference to our customers.

New Holland is a brand with a global presence.

This is part of our DNA.

We are a globally balanced business, supported by 25 manufacturing plants in 14 countries around the world.

Our revenues are split as follows:

  • 43% coming from Europe
  • 30% from North America
  • and 27% from Latin America and the rest of the world.

New Holland also has strong commercial presence, with a dealer network of more than 3,000 dealers covering all regions, with their several thousand outlets.

As a result of our heritage,  our brand recognition and customer base vary region by region, as shown in the map.

We understand and leverage on this difference.

New Holland is the specialist brand able to meet the different needs of every key customer segment around the world with a complete offering of products, adding up to 300 models and 20 product lines.

Our wide product offering, combined with our drive for innovation and service, a strong dealer network and a focus on our customers’ needs has brought us impressive results.

I would like to quote a few of the latest published market share numbers.

New Holland:

  •  has a 26% share of the European Combine market;
  • is number 1 in Europe and in the world for big balers, with a 30% share in the world and 36% in Europe;
  • holds a 16% tractor market share, in the world and in Europe
  • and is number 1 in Europe and in the world for self-propelled grape harvesters with over 50% market share.

Now let’s turn our attention to the future.

The continued success and growth of New Holland is based on 3 key strategic assets:

  • reliable, innovative and performing products;
  • a strong and profitable dealer network;
  • a distinctive and superior customer support.

Let’s look at them one by one, starting with the product.

At New Holland we continuously invest in developing, renewing and expanding our product offering.

In fact, between 2006 and 2009 we will have renewed all the product offering, both in tractors and harvesting equipment.

And here at the SIMA we are showing key products which will be a great asset to our customers’ businesses. I would like to mention two in particular.

First of all the New T7000 tractor: a core product for the arable farmer and contractor segments, and a key product for us.

We are really proud of this product, which offers best-in-class performance in the 4 areas most important for customers:

more productivity and power: up to 20% time saving in field work and up to 147% more power boost than the best competitors

less costs and fuel: up to 11% lower operating costs and up to 18% lower fuel consumption than competitors
proven quality and reliability:  over 25,000 hours lab and field tests to guarantee quality from day one.

Absolute driving pleasure: the quietest cab in the industry, with 69 dB. You can can see for yourself how much quieter this cab is from competition by climbing into the cab of the T7040 in the corner on my right.

The T7000 is already a success, and the good reaction from the market and from the press led us to request a 20 % increase in  production.

The second product I would like to mention today is the new FR9000.

The new generation Self-Propelled Forage Harvester offers the right solution for forage harvesting on the largest scale.

To give you just a few examples, the FR9000:

  • has the largest chopper in the industry – up to 15 % larger than the competition!
  • is the first agricultural product to introduce the turbo compound engine technology, which gives our customers 8% better fuel efficiency
  • and is the only one to offer the Power Cruise driving system to guarantee maximum capacity in the field and up to 20% less fuel consumption on the road.

This is an entirely new product, developed specifically for Europe. We involved our customers from the beginning, throughout the development and testing proces. The result is a highly innovative machine with outstanding performace that meets the specific needs of our European customers.

I mentioned the thorough preparation we completed for the launch of the T7000. We followed the same approach with the FR9000, with an extensive testing programme which included 6,000 hours of field testing in 11 different countries.

In addition to renewing the product offering, we are also investing to support the use of biodiesel on our equipment.

We are the first agricultural equipment manufacturer to adopt a comprehensive approach to promoting the use of biodiesel in all countries around the world:

First of all, customers can run on 20% biodiesel all the New Holland products with our engines, including common-rail, with no modifications and no limitations.

On top of this, over 60% of our entire product offering can run on 100% biodiesel.

The second key strategic asset I mentioned is the dealer network. Our dealers are key to the success of our customers.

We want our dealers to be strong, because only a strong dealer can invest in the business to provide our customers the support and service they need.

We want them to invest in developing their business. We are working together with them to identify growth opportunities and to improve their business performance.

We are also investing heavily in sales and service training, which is fundamental to their success.

For example, for the launch of the T7000 we are running a huge training programme.  We are taking all our dealer salespeople for 3-day workshops. They test the product and compare it with competitive units in the field.  In short, they experience first hand the performance of the tractor and learn how to explain its benefits effectively to customers.

To increase the knowledge and the expertise of our technicians we are in the process of introducing the Dealer Technician Certification programme, which creates a clear learning path with different levels of qualification. All our dealer technicians will be assessed and trained through workshop courses and distance learning programmes. This will give our customers an even greater confidence in the professional technical support they receive from their dealer.

These are just a couple of examples of what we are doing to help our dealers to grow, and help our customers to get the most out of their farming business.

This leads me to the third key asset: a distinctive and superior customer support.

Today, even more than in the past, customers want to be taken care of. They want to know that their business really matters to us.

Modern farmers are under enormous pressure to maximise productivity, and they need solutions to minimise downtime.

A recent survey has shown that service has five times more weight than any other factor in influencing purchase and repurchase decisions.

That’s why service makes all the difference...

and why it is a key pillar of New Holland’s strategy for success.

In fact, we are taking the opportunity of the SIMA, one of the key meeting points for the European farming industry, to announce a new programme that will bring New Holland even closer to its customers: ‘New Holland Top Service’.

First of all, with New Holland Top Service our European customers will be able to contact directly the New Holland team

  • 24 hours a day,
  • 7 days a week,
  • all year round.

The New Holland operator will receive the call and activate the process to resolve the issue, alerting the New Holland Top Service Manager in the customer’s market, who will take ownership of the process until the customer’s issue is resolved.

He and his team will work closely with the dealer and the New Holland Parts and Service teams to find the best and quickest solution.

Our Parts organisation has set up a dedicated team to support the New Holland Top Service process, with staff available 24/7, all year round.

Specialist tools will enable them to locate parts rapidly across Europe and ensure they are delivered quickly and efficiently.

In case of a technical problem, the New Holland Top Service team will escalate the issue through our Engineering team until a solution is found and implemented to the customer’s full satisfaction.

On top of this, for flagship products, the highest productivity machines, we will do even more to support them during the harvesting season.

For these customers, the New Holland Top Service Manager has the authority to do whatever it takes to get the customer’s machine back to work as quickly as possible during this critical time for their business.

For example, if a part that is needed to repair the machine can’t be found at the dealer, he will work with our Parts organisation to find the quickest way of obtaining the part, even if it means taking it from the factory assembly line or direct from a supplier and flying it to the customer.

For most issues the solution will be identified within a few hours.

For the more complex ones the customer will be advised on the progress and the solution that has been identified.

A few days after every customer’s initial call,  the New Holland Top Service team will call back to check how satisfied they are with our service. We will review the process on the basis of this feedback, making any changes that can bring a further improvement.

I would like to draw your attention to a very important point: the role of the dealer in this process is fundamental. The New Holland Top Service does not replace the dealer - it gives him the full backup of New Holland through a dedicated organisation and structured processes so that he is able to give his customer the best support.

Before launching this process, we tested it with great success last year in the UK and Denmark. The feedback from our customers and our dealers was extremely positive: they told us that they really felt that New Holland was at their side during the harvest.

In fact, we have already felt a positive effect on our sales!

Following last year’s test, we made some adjustments to the process and now we are ready to start the full launch in Europe. In a second phase, the programme will be extended worldwide.

In our full roll-out of the programme, we have an additional great advantage. Our New Holland Top Service  programme leverages on the experience and the system set up by Iveco, who introduced a similar process very successfully.

I am very happy to have here with us today Mauro Veglia, who has developed and implemented this system in Fiat Auto and Iveco.

Mauro Veglia – Senior Vice President, New Holland and Fiat Automobiles Customer Care

Thank you Lorenzo.

My name is Mauro Veglia and I am responsible for Customer Care for Fiat Automobiles and New Holland.

I joined the Fiat Group in 1988,  where most of my career has focused on customer care.  It is my objective to bring to New Holland the experience I have gained in my previous positions:

  • first in Iveco where I “practiced” Customer Satisfaction in the position of Iveco Customer Care Center Manager until I was appointed General Manager for Turkey, Middle East and Africa.
  • Then in Fiat Group Automobiles, where I was appointed Customer Service Manager in 2005.

Now that I also hold the same responsibility in New Holland, I am in the best position to bring to this brand the resources and experience of the Group’s Customer Care team.

It is evident that both trucks, tractors and harvester machinery are working equipment: as a consequence productivity is vital and the main objective  is to minimise downtime. We know that during the harvesting season our customers’ combines must give them the highest productivity, and it is our job to support New Holland dealers in ensuring this is possible.

The dealer network has a crucial role to play in the relationship with the customer and in the resolution of their issues.

Iveco, as well as New Holland, believes that succeeding today requires putting the customer at the center of the strategy. This is why we focus on the issues that are critical for our customers -- issues such as a vehicle breakdown.

In particular, Iveco has a breakdown service that manages 1 million direct contacts with customers and 100,000 issues per year, resolving 80% of them within 8 hours.

This service gives customers the confidence that wherever they are, whenever the breakdown happens, they can rely upon the dealer network, the dedicated team of specialised technicians and, if necessary airmail delivery of spare parts.

This is the type of service we will implement with New Holland Top Service.

In this first phase, New Holland Top Service will be available in 12 European countries, where over 100 Customer Centre dedicated agents, 135 New Holland technical support staff and over 6,000 dealer technicians will be at our customers’ side to give them the best experience of the New Holland brand.

This team will work closely with New Holland and its dealers to achieve the same high customer satisfaction results we reached in Iveco, ranging from 8.7 to 8.9 out of ten.

When we call the customer after his issue has been resolved, we go through a detailed list of questions. This enables us to analyse the process and identify precisely those areas that need our attention in order to improve even more.

It is our aim to have the best understanding of New Holland’s customer needs in order to offer innovative and effective solutions, making the most of the joint experience and resources of Iveco and New Holland, while focusing on the specifics of the agricultural business.

I hope to meet you again soon to celebrate with our customers and dealers the success of this initiative.

Lorenzo Sistino – President, New Holland

Thank you Mauro.

This is another example of the way New Holland benefits from being part of the Fiat Group, taking advantage of the resources and the expertise developed by other sectors of the group.

The New Holland Top Service European toll free number will be activated on April the 2nd, and the extra in-season support for flagship product customers will start at the beginning of the 2007 harvesting season.

Through our New Holland Top Service programme, New Holland and our dealers will offer best-in-class support to our customers through:

  • A dedicated organisation,
  • A built-in monitoring process to track every request until it is resolved to the satisfaction of the customer.
  • A structured closed-loop process which only closes when the the customer has been called for his final feedback, which is then used to improve continuously the process.

In conclusion, New Holland has all the strategic assets it needs to be successful in its strategy to grow:

  • We have the widest offering in the industry, with innovative, reliable products;
  • a strong and professional dealer network;
  • and we are beside our dealers and customers 24 hours a day, 7 days a week through
  • New Holland Top Service.

Moving forward, New Holland has the strategy and the resources to support our customers’ and our dealers’ success, and achieve our growth objectives. An increase in our sales volumes will be the key to improving our profitability and that of our dealers.

Thank you for your attention, and enjoy your visit of the New Holland stand.



 
© 2008 New Holland 


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