While YouTubers would have you believe CNH was packing up and leaving the U.S., the OEM’s quarterly presentation suggests its U.S.-based manufacturing is alive and well, although softer due to current market conditions. 

During a call with investors, CNH CEO Gerrit Marx noted the company kept production during the first quarter very low to reduce inventories while, quote, “defending our growing market shares.” 

In line with expectations, CNH’s financial results came in at a low point, he said, adding that CNH is focused on what it can control while the industry demand remains soft and it “does its homework on multiple commercial and operations fronts. 

During the call, CNH executives addressed the potential impact of tariffs. Oddone Incisa noted that in 2024, about two-thirds of the machines sold in the U.S. were manufactured in CNH’s U.S. plants. And, the U.S. plants sourced 70% of its components from U.S. suppliers with an additional 10% coming from Mexico and Canada. The remaining 20% of components are sourced mainly from Europe and China. 

Marx added,  

“We import planters from our factory in Saskatoon, Canada, and they are fully USMCA compliant. We’re also working on getting all the paperwork in place for the very small number of tractors that come from our joint venture in Mexico. Also, 95% of steel directly purchased by our U.S. plants come from American mills. We are currently producing at very low levels in the U.S. given the industry demand, so the immediate tariff impact isn’t the same as if we were at the peak of the industry.”

Existing presold retail orders will not be affected by pricing adjustments, he said. 

Watch the full version of this episode of On The Record