The sale follows the company’s announcement in March 2022 that it was suspending supplies to this market. Until today, the payment of employee salaries and other administrative expenses in Russia has been guaranteed.
Until March 2022, the company operated a corporate office in the Moscow region. It managed the import and distribution of its products in Russia, regional business activities and commercial financing. Its industrial footprint included manufacturing sites for agricultural equipment, implements, construction equipment, and a parts depot. These sites employed approximately 200 employees.
For the fiscal year ending 2021, the last full year of operations, the Russian operations generated approximately $380mn, representing 2% of the company’s consolidated revenue in 2021. During the quarter that ended March 31, 2022, CNH Industrial recorded charges of $71 million related to assets write-down, financial receivable allowances, and a valuation allowance against deferred tax assets. The company estimates it will take additional pre-tax charges of approximately $20mn for the divestitures.
CNH Industrial wishes to acknowledge its former employees for their years of dedicated service.