Trucks and Commercial Vehicles

The Trucks and Commercial Vehicles Segment designs, produces and sells a full range of light, medium and heavy vehicles for the transportation and distribution of goods through its Iveco brand, commuter buses and touring coaches through the Iveco Bus and Heuliez Bus brands (previously Iveco Irisbus), quarry and mining equipment through Iveco Astra, and firefighting vehicles through the Magirus brand and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. Trucks and Commercial Vehicles offers customers worldwide after-sales support and advanced financial services solutions for the purchase, lease or rental of its vehicles.trucks and commercial vehicles

Trucks and Commercial Vehicles has a long tradition of innovation for both vehicles and engines (being the first manufacturer to introduce turbo on its entire range of diesel engines, the first to use common-rail technology and the first to launch Euro V-compliant vehicles). The Segment’s vehicles offer the latest technologies from Powertrain Segment, applied to a comprehensive range of diesel and alternative engines, including natural gas (compressed and liquid), biofuel and hybrid technologies and electric propulsion engines.

As of December 31, 2013, Trucks and Commercial Vehicles had 27,246 employees, operated 17 manufacturing plants in 10 countries (primarily in Europe, Latin America and Australia), and had 16 R&D centers. The Trucks and Commercial Vehicles Segment’s products are also manufactured at 12 other plants (mainly in China and Russia) operated by joint ventures. Through 2,939 sales centers and 4,782 service centers in over 160 countries, the business can provide support in any geographic area where its vehicles are at work.

In addition to its traditional European markets, Trucks and Commercial Vehicles has placed particular focus on development in Latin America, and in particular Brazil, where Trucks and Commercial Vehicles intends to expand its presence through an increasingly extensive and technologically advanced product offering. In China, Trucks and Commercial Vehicles has focused on the expansion of its product range to increase its presence in the domestic market, with an offer of high quality products, as well as exporting production from its local joint ventures to other markets. Africa represents an important investment area in the Group’s global strategy, where Trucks and Commercial Vehicles competes with a full range of models engineered for the local market and is building in South Africa a new assembly facility for medium and heavy range trucks and buses.


Trucks and Commercial Vehicles

Trucks and Commercial Vehicles is one of the world leaders in road transportation. Under the Iveco brand, the trucks and commercial vehicles business offers a range of light, medium, and heavy trucks and commercial vehicles for both on-road and off-road use. The key players in its product line-up are the Daily, a vehicle that covers the 2.8 – 7 ton vehicle weight segment, the Eurocargo from 6 – 16 tons, the Trakker (dedicated to off-road missions) and the Stralis, both over 16 tons. The product offering is complemented by a series of aftersales, financing and used vehicle assistance services.

Light vehicles include on-road vans and chassis cabs used for short and medium distance transportation and distribution of goods, off-road trucks for use in quarries and other work sites. Iveco also offers shuttle vehicles used by public transportation authorities, tourist operators, hotels and sports clubs and campers for holiday travel.

The medium and heavy vehicles product lines include on-road chassis cabs designed for medium and long distance hauling and distribution. Medium GVW off-road models are typically used for building roads, winter road maintenance, construction, transportation, maintenance of power lines and other installations in off-road areas, civil protection and roadside emergency service. Heavy GVW off-road models are designed to operate in any climate and on any terrain and are typically used to transport construction plant and materials, transport and mix concrete, maintain roads in winter and transport exceptionally heavy loads.

Trucks and Commercial Vehicles is the only producer to offer ecological diesel and natural gas engines on its entire range of vehicles and was the first full-line commercial vehicle manufacturer to make a substantial investment in natural gas technology, developing engines with specific components and configurations optimized for use with CNG and LNG.


Under Iveco Bus and Heuliez Bus brands, the Segment offers a complete range of local and inter-city commuter buses, minibuses, school buses and tourism coaches, with around 9,400 units sold in 2013.

The rebranding from the former Iveco Irisbus brand will strengthen identification of the bus range of products with the Segment’s other international activities.

Iveco Bus is one of the major European manufacturers in the passenger transport sector and is steadily expanding its activities globally, with a presence in more than 40 countries. This result has been achieved through continuous investment in research and development and the use of cutting-edge manufacturing technologies. A distinctive trait that sets Iveco Bus apart in its sector is its approach to innovation and testing, which for years has been conducted in close collaboration with public transport operators on alternative fuels and new vehicle concepts, focusing particularly on environmental impact, passenger comfort and operating costs.

Founded more than 90 years ago by Louis Heuliez, the company that carries his name started by manufacturing coaches, and later began producing buses for urban transport in the 1970s. Since then, Heuliez Bus has continued to grow, becoming a leader in France for the urban bus market. Today, it is a premium brand in the sector, operating according to its corporate strategy and strengths: creativity, innovation, quality, attention to customer needs and sustainability. With its headquarters in France, Heuliez Bus is also present in Spain, Switzerland, Belgium, Luxembourg and the Netherlands.

Specialty Vehicles

Magirus - For about 150 years, Magirus has manufactured vehicles designed to respond to natural disasters and civil emergencies, such as fires, floods, earthquakes and explosions. Magirus was established in 1864 by Conrad Magirus, commander of the fire brigade in Ulm, Germany and inventor of the first-ever fire-fighting ladder. Today Magirus is one of the major groups in the global fire-fighting and emergency-response vehicles. The brand collaborates actively with fire fighters and emergency workers around the world, seeking to develop the most advanced and reliable technological solutions.

Iveco Astra - Founded in 1946, the Astra brand has been owned by Trucks and Commercial Vehicles since 1986. Iveco Astra builds vehicles that can enter the most inaccessible quarries and mines and move large quantities of material, such as rock or mud, and perform heavy-duty tasks in extreme climatic conditions. The product range includes mining and construction vehicles, rigid and articulated dump trucks, and special vehicles.

Iveco Defence Vehicles - Iveco Defence Vehicles produces and sells purpose-built vehicles for defense and civil protection applications. The brand offers advanced anti-ballistic, anti-mine and other life-saving technology, together with maximum mobility in extreme circumstances.

Financial Services

Trucks and Commercial Vehicles offers direct financial services in Europe and Russia. In Latin America and China financial services were provided through the companies of Fiat Group. Starting from January 2014, Latin America is directly managed by CNH Industrial Financial Services.

In Spain, financial services are managed by Transolver Finance Establecimiento Financiero de Credito S.A. (a 50/50 joint venture with the Santander group) which is accounted for under the equity method. The company offers both retail and dealer financing services.

In January 2014, CNH Industrial N.V. and BNP Paribas Leasing Solutions, the two shareholders of CNH Industrial Capital Europe, have agreed on the extension of the joint ventures services to CNH Industrial Group’s Truck and Commercial Vehicles Segment in Italy, Germany, France, the United Kingdom and other major European markets. This extension has been approved by the French banking regulatory authority (ACPR). As a result of this increase in scope, CNH Industrial Capital Europe is now the captive finance company for all the current CNH Industrial Group business in major European countries, offering also to Trucks and Commercial Vehicles customers access to tailored financing and leasing services.

In Eastern Europe, the activity is managed by fully-consolidated captive financial services companies.

Trucks and Commercial Vehicles Financial Services (here “Truck & CV Financial Services”) offers a range of financial services to dealers and end-customers in the various regions in which it operates. The principal products offered are lease and retail financing for the purchase of the Segment’s new and used vehicles. In addition, Truck & CV Financial Services purchases mainly from dealers vehicles that are leased to retail customers under operating lease agreements. In some jurisdictions, Truck & CV Financial Services also provides insurance and other financial products and services to end customers and its dealer network. Additionally, Truck & CV Financial Services offers wholesale financing to dealers. Wholesale financing consists primarily of floor plan financing and allows dealers to purchase and maintain a representative inventory of products and spare parts. Truck & CV Financial Services offers also a dedicated factoring facility on the trade receivables originated by the manufacturer.

As a captive finance company, Truck & CV Financial Services is reliant on the operations of Trucks and Commercial Vehicles, its dealers, and end-use customers. As of December 31, 2013, Truck & CV Financial Services managed a portfolio of receivables of approximately €3.8 billion, mainly concentrated in Europe and Russia.

The contraction in business volumes experienced in 2013 did not adversely impact the number of new vehicles financed, in line with 2012 performance.

For fully-consolidated financial services companies and the Spanish joint venture, 12,962 new vehicles were financed in 2013, compared to 13,161 vehicles in 2012, with a penetration rate of 21.0%, in line with the previous year (21.0% in 2012). Total vehicles financed reached 17,524 (18,638 in 2012) including buses and other used vehicles.

The financial services business supports the growth of Truck and Commercial Vehicle sales and builds dealer and end- user loyalty. Truck and Commercial Vehicles strategy is to grow, also through partnerships and JVs, a core financing business to support the sale of its vehicles by improving its portfolio credit quality, service levels, operational effectiveness and customer satisfaction. Truck & CV Financial Services operates to develop and structure financial products with the objective of increasing vehicle sales and generating financial services income. Truck & CV Financial Services also offers on a limited basis products to finance non-segment vehicles and equipment sold through Trucks and Commercial Vehicles’ dealer network. Financed non-segment vehicles and equipment includes used vehicles taken in trade on Trucks and Commercial Vehicles products or equipment used in conjunction with its vehicles.

Customer Financing

Truck & CV Financial Services has certain retail underwriting and portfolio management policies and procedures that are specific to the trucks and commercial vehicles business. This distinction allows Truck & CV Financial Services to reduce risk by deploying industry-specific expertise in its business. Truck & CV Financial Services provides retail financial products primarily through Trucks and Commercial Vehicles dealers, who are trained in the use of the various financial products. Dedicated credit analysis teams perform retail credit underwriting. The terms for financing vehicles retail sales typically provide for retention of a security interest in the vehicles financed.

Dealer Financing

Truck & CV Financial Services provides wholesale floor plan financing for nearly all of its dealers, which allows them to acquire and maintain a representative inventory of products. For floor plan financing, the Trucks and Commercial Vehicles Segment generally provides a fixed period of “interest-free” financing to the dealer. This practice helps to level fluctuations in factory demand and provides a buffer from the impact of sales seasonality. After the “interest-free” period, if the equipment remains in dealer inventory, the dealer pays interest costs. Truck & CV Financial Services generally receives compensation from the Trucks and Commercial Vehicles Industrial Activities equal to a competitive interest rate for the “interest-free” period.

A wholesale underwriting group reviews dealer financials and payment performance to establish credit lines for each dealer. In setting these credit lines, Truck & CV Financial Services seeks to meet the reasonable requirements of each dealer while managing its exposure to any one dealer. The credit lines are secured by the equipment financed or by other collateral. Dealer credit agreements generally include a requirement to repay the particular loan at the time of the retail sale. Truck & CV Financial Services employees or third-party contractors conduct periodic stock audits at each dealership to confirm that financed equipment is still in inventory. The frequency of these audits varies by dealer and depends on the dealer’s financial strength, payment history and prior performance.

Sources of Funding

The long-term profitability of Trucks & CV Financial Services’ activities largely depends on the cyclical nature of the trucks and commercial vehicles industries, interest rate volatility and the ability to access funding on competitive terms.

Financial Services’ funding strategy is to maintain a sufficient level of liquidity and flexible access to a wide variety of financial instruments in support of its business, including through new funding arrangements, joint venture opportunities, vendor programs or a combination of the foregoing.

Wholesale business is funded mainly through securitization programs and factoring facilities, based on the revolving sale of receivables either to a special purpose legal entity or to a bank. Inter-company funding complements these sources of funding.

Retail business is currently funded through unsecured and secured credit facilities as well as inter-company borrowings. Starting from 2014 it will be primarily funded through the joint venture with BNP Paribas Leasing Solutions.

In addition, vendor programs with BNP Paribas provide financing in Germany and France for the new business generation since January 1, 2012.

In December 2013, as scheduled, Trucks & CV Financial Services repaid the residual debt under the secured financing provided by Barclays in 2012, at the end of its joint venture. The repayment was financed by new bi-lateral secured borrowings.

Innovation and New Products

Product development is based on a series of structured processes, aimed at ensuring that design, development and production methods are oriented toward sustainable mobility, safe and ecological production processes and customer satisfaction. Product innovation is organized around four strategic priorities: the environment, safety, productivity and performance. Process innovation focuses on product development processes, virtual analysis, performance measurement and testing and product-process integration.

During 2013 Trucks and Commercial Vehicles continued to invest in all the key areas of product, service and quality to improve the business, despite the general difficult economic situation.

Trucks and Commercial Vehicles participated at Transpotec Logitec 2013 in Verona, Italy, at the end of February, where Iveco showcased a range of products including the new Euro VI version of the heavy range Stralis Hi-Way, which was named “International Truck of the Year 2013”.

In March, Iveco launched the new medium Vertis HD, which is designed to meet the specific needs of the Brazilian market and forms an important part of the Segment’s commercial strategy. The heavy duty Stralis Hi-Way was also launched in Brazil during the year with three engine variants (440 hp, 480 hp and 560 hp) and three different configurations. Both vehicles are produced at the Group’s plant in Sete Lagoas, Brazil.

In April, the Segment participated in Bauma 2013 in Germany, where it premiered the super heavy duty Astra HHD9 that is designed to operate in the most extreme conditions.

Trucks and Commercial Vehicles was present at Auto Shanghai 2013 in April, where it presented its new line-up of vehicles for the Chinese market. Models showcased included: the new heavy Stralis Hi-Road which is ideally suited to the needs of the Chinese logistics market; the new medium Eurocargo configured for firefighting applications; and the heavy-duty Trakker, which is designed to operate in the most extreme terrain and weather conditions. In addition, the Segment also launched two new models developed through its Chinese joint ventures: the 2013 Naveco Power Daily light vehicle, based on the Iveco Daily platform; and the heavy-duty Iveco 682 on-road tractor designed for transport of coal, concrete and hazardous materials.

In June, the new Stralis Hi-Way was presented at CTT 2013, the construction equipment trade show in Moscow, as well as in Turkey and at the Brisbane Truck Show (BTS) in Australia.

In June, the first Defence Vehicles plant outside of Europe was opened in Sete Lagoas, Brazil, where the Segment produces the Guarani, a VBTP-MR armored vehicle developed in partnership with the Brazilian Army.

At Comtrans 2013 in Moscow in September, the Segment, a leader in the natural gas vehicle segment in Europe, exhibited its entire product lineup complete with the CNG versions of the Daily and Eurocargo.

In September, Naveco (a joint venture with SAIC Group) presented the new mid-size cab Yuejin “Chaoyue”, further expanding the model range which last year was named “Truck of the Year 2013” in China.

In November, Iveco launched the new medium Euro VI Eurocargo in the European market, equipped with Powertrain’s exclusive HI-eSCR technology. Produced at the Segment plant in Brescia, Italy, the new Euro VI Eurocargo offers all of the traditional features that have led to the model’s success over the years, together with innovative new features, superior power and the optimized fuel efficiency offered by the HI-eSCR technology. With its superior fuel efficiency, maintenance performance and value, the new Euro VI Eurocargo continues as one of the most competitive vehicles in the market, particularly in terms of operating costs.

In Australia, the Segment presented the new Iveco Powerstar 7800, a unique Australian-made product designed for road train applications which is built to withstand the country’s extreme climates and harsh road conditions.

Naveco received the “2013 China Logistics Technology & Equipment Innovation Enterprise” and “2013 China Logistics Technical Equipment Industry Technology Innovation Products” awards for the Power Daily at the 2013 National Conference of Modern Logistics Development, for the efficiency, affordability, safety and innovation of its products.


The Segment introduced the new Iveco Bus brand. The rebranding from the former Iveco Irisbus brand will strengthen identification of the bus range of products with the Segment’s other international activities. Launch of the Iveco Bus brand coincided with the world premiere of the URBANWAY city bus, the brand’s first Euro VI passenger vehicle, which was presented in May at the UITP World Congress and Mobility & City Transport Exhibition in Geneva.

In October at Busworld in Courtrai, Belgium, the leading European trade fair for the collective passenger transport sector, Iveco Bus presented its latest line-up of buses, equipped with Euro VI engines developed by Powertrain, which offer customers a 5-10% improvement in fuel efficiency.

Sales and Distribution

The Trucks and Commercial Vehicles Segment’s worldwide distribution strategy is based on a network of independent dealers, in addition to its own dealerships and branches, aimed at providing high quality service combined with a widespread local presence. As of December 31, 2013, Trucks and Commercial Vehicles had 688 dealers globally (of which 20 were directly owned by the Segment and 11 were branches), including 303 in Western Europe, 83 in Eastern Europe, 117 in Africa and the Middle East, 65 in Latin America and 120 in the Asia-Pacific region. 532 of those dealers sell trucks and commercial vehicles, 97 sell buses and 59 sell specialty vehicles. All of these dealers sell spare parts for the relevant vehicles. Trucks and Commercial Vehicles bolsters its distribution strategy by offering incentives to its dealers based on target achievements for sales of new vehicles and parts and providing high quality after-sales services.

Continuous strengthening of the sales network is a key element of Trucks and Commercial Vehicles growth strategy. In Western Europe, Eastern Europe and Latin America, continued consolidation of the network is aimed at improving service to customers, increasing profitability and reducing overall distribution costs. In Africa and the Middle East, the distribution network is being expanded in order to fully exploit growth in these markets.

In the United Kingdom, the Segment is one of the few OEMs that sells trucks and commercial vehicles to companies which offer commercial vehicle rental solutions, such as Ryder, Fraikin and Burntree, among others.

In accordance with European legislation, Trucks and Commercial Vehicles dealers distribution contracts cover a specific reference area (but without any exclusivity in terms of territory) and contain qualitative standards. Under the existing contracts, according to applicable law, Trucks and Commercial Vehicles dealers are allowed to carry multiple brands, even if, as matter of fact, the corporate identity of such dealer is 100% the Trucks and Commercial Vehicles brands.

Parts and Services

The quality and timely availability of parts and services are important competitive factors for the trucks and commercial vehicles business. Trucks and Commercial Vehicles after-sales services contribute to overall dealer and customer satisfaction and are important considerations in a customer’s original equipment purchase decision. Trucks and Commercial Vehicles supplies a complete range of parts, many of which are proprietary, to support items in its current product line as well as for discontinued products.

As of December 31, 2013, Trucks and Commercial Vehicles had approximately 4,800 service outlets (approximately 2,000 of which were in Europe). In addition to Trucks and Commercial Vehicles standard one-year full vehicle warranty and two-year Powertrain warranty, which are extended in certain jurisdictions including the United Kingdom and Germany to match competitors’ practices, Trucks and Commercial Vehicles offers personalized after-sales customer assistance programs under its Elements program.

“Elements” provides a wide range of modular and flexible maintenance and repair contracts as well as warranty extension services to meet a variety of customers’ needs and to support the vehicle’s value over time. Elements maintenance and repair contracts are typically for a period of three (3) to five (5) years and subject to a mileage cap. Benefits of this service include the guaranteed use of original spare parts and the know-how and expertise of Trucks and Commercial Vehicles professional network. Trucks and Commercial Vehicles also offers the Assistance Non-Stop service, which provides customers with access to multilingual professionals 24 hours a day. At its service centers, Trucks and Commercial Vehicles uses advanced diagnostic tools, such as Easy Skite (a sophisticated endoscopic analysis system, that, by means of a small probe, inspects the most inaccessible parts of the vehicle and transmits images in real time, which can also be used remotely by Trucks and Commercial Vehicle Specialists) and Easy Scope (a powerful, latest generation digital oscilloscope that displays changes in variables such as current and voltage over time).

Joint Ventures

In addition to its dealer network, Trucks and Commercial Vehicles is involved in several production and commercial joint ventures, as part of a strategy to enter and expand in emerging markets. These joint ventures include Naveco, a well-established player in the Chinese light and medium truck and commercial vehicle market. Naveco is a 50/50 Chinese joint-venture of Trucks and Commercial Vehicles and the Nanjing Automotive Corporation, a subsidiary of the SAIC Group, which designs, produces and sells Daily model and light trucks. A second and more recent Chinese joint- venture is SAIC Iveco Hongyan Commercial Vehicle (SIH), which designs, produces and sells heavy vehicles.

Trucks and Commercial Vehicles also holds an interest in SAIC Fiat Powertrain Hongyan Ltd, a Chinese engine producer controlled by Powertrain Segment (see Powertrain Segment - Joint Ventures) through a joint venture with SAIC Group.

Trucks and Commercial Vehicles has recently set up in South Africa a joint-venture (in which the Segment hold 60% shares) with the LARIMAR Group, a leading South African public transport operator and bus manufacturer, for operating a new assembly facility for medium and heavy range trucks and buses in Rosslyn, South Africa.


In the trucks and commercial vehicles businesses, factors that influence a customer’s decision to buy a vehicle include product, parts and after-sales service availability, which is supported by the depth of the distribution network, price, features and performance of products, brand loyalty, technological innovations, availability and terms of financing, and resale value. The ability to meet or exceed applicable vehicle emissions standards as they take effect is also a key competitive factor, particularly in those markets where such standards are the subject of frequent legislative or regulatory scrutiny, such as Europe and North America.

Trucks and Commercial Vehicles competes on the basis of product features and performance, customer service, quality and price. The Group believes that the Segment’s competitive strengths include well-recognized brands, competitively priced products, technological innovations, a strong distribution and customer service network and dedicated financing for customers and dealers.

The financial services industry is highly competitive. Truck & CV Financial Services competes primarily with banks, finance companies and other financial institutions. Typically, this competition is based upon the financial products and services offered, customer service, financial terms and interest rates charged. Truck & CV Financial Services’ ability to compete successfully depends upon, among other things, funding resources, developing competitive financial products and services and licensing or other governmental regulations.

In the trucks and commercial vehicles business, Iveco brand principally competes with major manufacturers that have similar product offerings such as:

  • Daimler, whose brands include Mercedes-Benz, Mitsubishi Fuso, Freightliner, Western Star and Bharat-Benz (India);
  • MAN, which sells products under the MAN brand;
  • Paccar, whose brands include DAF, Kenworth, Ken Mex and Peterbilt;
  • Scania, which sells products under the Scania brand; and
  • the Volvo Group, which sells products under the Volvo, Renault, MACK and UD Trucks brands.

In the bus business, Iveco Bus and Heuliez Bus’ main competitors are Daimler Buses (Mercedes-Benz and Setra brands), Volvo Bus Corporation, MAN (MAN and Neoplan brands) and Scania. In the firefighting business, Magirus’ principal competitor worldwide is Rosenbauer International AG. Iveco Defence Vehicles’ principal competitors are Rheinmetall, Oshkosh, Navistar, Nexter, General Dynamics, BAE Systems for defense; Mercedes Benz, MAN in the trucks business. In the heavy duty equipment business, Iveco and Iveco Astra’s principal competitors are Caterpillar Inc. and The Volvo Group.