CNH Divests, Closes and Moves operations.

4WDs and 2WDs

Following approval by the US Department of Justice and the Canadian Government in mid-July, Buhler Versatile, Inc., a subsidiary of Buhler Industries, Inc., has purchased the New Holland Versatile, Genesis and G/70 series four-wheel- and two-wheel-drive tractor lines from CNH Global.

The purchase also includes the Winnipeg, Canada, plant in which the tractors are built.

The agreement calls for Buhler to supply the worldwide New Holland commercial organization with these tractor lines until October 31, 2001, and the Genesis and G/70 series tractors to markets outside North America until December 31, 2002. Buhler will supply Winnipeg-produced replacement parts for these tractor lines to New Holland on an ongoing basis.

Buhler will manufacture New Holland's Bidirectional tractor, the TV 140, for exclusive distribution by New Holland, and CNH retains all commercial rights to this tractor line. CNH also retains the patented SuperSteer design technology, which CNH will license to Buhler for use on the Versatile, Genesis and G/70 series tractors. CNH plans to integrate the SuperSteer design into future New Holland tractor models.

CNH president, Jean-Pierre Rosso, says the company has begun development on a new generation tractor line for the New Holland brand, which will have differentiated features specifically developed for New Holland customers. The new tractors are expected to be introduced in 2001.

Loaders and mini-excavators

In settling another part of the divestiture agreement, the European Commission has approved the sale by CNH of its Fermec Holdings Limited construction equipment business to EarthForce Holdings Limited. EarthForce is purchasing the Manchester, England, plant and the Fermec loader/backhoe and industrial tractor product lines, and CNH will discontinue supplying skid steer loaders from its Wichita, Kansas, plant for the Fermec line. Fermec products will continue to be marketed through existing dealer and distributor outlets.

CNH retains its manufacturing and marketing rights for mini-excavators that were licensed to the company by Kobelco. Those models, as well as four-wheel-steer loader backhoes, will be made in Manchester and carry the Case brand.

Plants and jobs

On July 18, CNH announced planned consolidation actions in the company's manufacturing operations which will result in about 1,800 job cuts. This brings the total to about 5,000 of the 7,600 jobs which the company announced plans to cut.

In North America, those actions include:

* Racine, WI - close tractor plant by 2004

* East Moline, IL - close combine plant by 2004

* Fargo, ND - close Concord plant, move to Saskatoon, SK by 2001

* Valley City, ND - close component plant by 2001

* Grand Island, NE - transfer hay and forage equipment production to Belleville, PA

* Grand Island, NE - consolidate combine production for Case IH and New Holland brands

* Belleville, PA - transfer skid steer production to Wichita, KS

In Europe, CNH has sold a component plant in Hattingen, Germany. The company closed the former New Holland headquarters near London in June and plans to close a facility in Kissing, Germany, in September. CNH continues to pursue divestiture of its plant in Doncaster, England.