CNH Industrial closes its production site in Berlin. The decision by the Italian-American group, owner of the brands CASE Construction Equipment, New Holland and Steyr, marks the end of decades of production tradition in the German capital. The company has not yet communicated precise figures on when the final closure will take place.
The Berlin site focused on the production of backhoe loaders and telescopic loaders for the European market. The closure affects hundreds of workers, although CNH has not yet published the exact number of jobs affected. The company has announced that it will provide support to the employees involved, but details on social measures remain vague.
Industry experts identify several causes behind this decision. Pressure on margins in the earthmoving machinery segment has increased in recent years. Asian competition, particularly from manufacturers like SANY and XCMG, has gained market share with aggressive pricing. Additionally, production costs in Germany are significantly higher compared to other European group sites.
The transition to electric and hybrid machines has required massive investments. CNH must decide where to focus future developments. The decision to close Berlin suggests that the group is banking on other plants for the production of the new generation of machinery. Other manufacturers like Volvo Construction Equipment have already begun transforming their German facilities towards electrification.
For the supply chain, the consequences are still to be assessed. Berlin produced components for other CNH sites in Europe as well. The redistribution of production could cause temporary disruptions in deliveries. Local suppliers that worked exclusively for the Berlin plant will need to find new customers or downsize.
The industry's reaction has been cautious. German industry associations have expressed concern about the loss of production expertise. Some CASE dealers fear delays in supplies during the transition phase. Other manufacturers could see opportunities to gain market share if CNH were to face production capacity issues.
CNH Industrial has not yet communicated detailed plans for the reorganization. It is unclear whether production will be transferred to other European plants or whether some models will simply be removed from the catalog. The company has stated that it will continue to serve the German market, but has not specified from which plants.
For the German earthmoving machinery market, the closure represents a concerning signal. After the restructuring of other manufacturers in previous years, the domestic production base is shrinking further. Dependence on foreign plants increases, with possible repercussions on delivery times and after-sales service.
