The reorganization includes plans to consolidate production at existing CNH plants in Curitiba, Belo Horizonte and Piracicaba in Brazil and to close the company's manufacturing facility in Sorocaba, Brazil. Curitiba will become the center for tractor and combine production for Latin America, and Piracicaba will produce planting equipment in addition to sugar cane equipment and coffee harvesters. Belo Horizonte will become the center of construction equipment manufacturing in Latin America.

The transfer of production will occur over the next 12 months. During this time, the company will work to ensure an uninterrupted supply of products to its customers. The company's strategy of developing products on global platforms will result in a highly cost-effective manufacturing process that will produce differentiated products that deliver high quality and performance for customers. Under the company's strong brands, these products will continue to be sold and serviced through CNH's existing distribution networks.

In addition, CNH will create a central distribution facility in the Campinas region of Brazil to provide replacement parts for the company's agricultural and construction equipment dealers and customers. Finally, Banco New Holland, the company's financial services operation in Brazil, will become Banco CNH Capital and will provide financing for dealers and customers of the company's agricultural and construction equipment brands.