Titan Machinery Inc. announced that it will divest its German dealership operations through two separate asset‑sale transactions to existing New Holland dealers in the region, with the deals expected to close within 120 days of the announcement.
The divestiture is part of CNH Industrial’s dual‑brand strategy, which seeks to optimize dealer coverage for both Case IH and New Holland brands. By transferring the German operations to New Holland dealers, Titan can streamline its European footprint and concentrate resources on markets where it can leverage its stronger service network and higher‑margin parts business.
Financially, the sale is projected to generate a pre‑tax loss of $3 million to $4 million, underscoring that the German operations had been a drag on Titan’s profitability. The loss reflects the broader decline in the company’s Europe segment, which saw a 26.8 % drop in revenue in Q3 2024, and highlights the need to cut inventory and reduce operating costs in underperforming regions.
Management explained that the German operations had faced a combination of headwinds, including intensified competition from local dealers, regulatory hurdles that increased operating costs, a mild economic slowdown in the German market, and operational inefficiencies that limited pricing power. These factors collectively weighed on returns and made the German market less attractive compared to other European and global markets.
While the company did not disclose specific employee outcomes, it is expected that the transition will involve a transfer of staff and customers to the acquiring New Holland dealers, with Titan’s management emphasizing a smooth handover to preserve service continuity.
By exiting Germany, Titan can reallocate capital and managerial attention to high‑margin parts and service businesses in North America and other European markets, supporting its broader strategy of inventory reduction and operational efficiency. The move positions the company to strengthen its core competencies and improve long-term profitability.
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