Following the announcement in early January that the dealership agreement between CNH Industrial and Norwood had ended, the Palmerston North headquartered company says it is entering into a consultation process with staff and dealerships for a realignment of its business strategy in 2023.
“We need to revisit our business strategies and growth plans. These were put in place last year and a lot has happened since then,” says Tim Myers, Norwood chief executive. “We are reviewing what this realignment means for Norwood and our network, alongside consulting with our staff on some proposed changes.”
At this stage, Norwood is proposing to close or consolidate a small number of dealerships and use the hub and spoke model that is operating successfully at other Norwood sites. This model allows field sales and service staff to work remotely with workshop service and parts supply support from a dealership a little further away.
Norwood is also proposing to reduce staff numbers at some dealerships and at its national support office. The company says some roles may be disestablished as the business adjusts; others may be vacancies that will not be filled.
“Our staff have had an extremely unsettling start to the year, so our priority is to focus on their wellbeing and to support those who are directly affected,” Myers says.
The exact number of dealerships and staff impacted will be confirmed after the consultation process has finished. Norwood currently has a network of 25 dealerships and employs 470 staff nationwide.