Source: CNH Industrial news release
Basildon, UK — CNH has finalized its previously announced plan to gradually stop production at its Burlington, Iowa assembly plant by the second quarter of 2026 due to declining demand and underutilization. This closure will affect approximately 200 employees. The company remains committed to supporting impacted employees through negotiated support packages and will maintain a presence in Burlington focused on engineering and testing.
Burlington plant closure rationale: The decision follows a 47% decline in loader backhoe demand since 2014, a key product line produced in Burlington, while demand for skid steers and compact track loaders produced at other CNH facilities increased nearly 70%, making Burlington the lowest-utilized and most costly facility to maintain.
Timeline: The decision was tentatively announced last year in November 2024 and finalized today after completing the decisional bargaining process with the United Auto Workers (UAW).
Employee support measures: CNH will negotiate strong separation packages with the UAW. We intend packages to include severance pay, continued health insurance, job training, and replacement assistance.
Operational pause to aid transition: Production at Burlington will pause for the remainder of the week following the announcement, with employees paid for the time off, to allow time to process the news.
Continued presence in Burlington: CNH will maintain engineering teams and a state-of-the-art proving ground in Burlington.
Investment commitment: Adjustments will reinforce CNH plans to invest nearly $5 billion over five years into U.S. manufacturing and R&D facilities, supporting over 8,000 American employees.
