Iveco Group’s (MIL:IVG, Financial) (Italy) arrival in the Fund stemmed from CNH Industrial’s demerger of its trucks and commercial vehicles business in early January. We spoke with Iveco’s management team ahead of the split and believe that the powertrain business is reasonably competitive, while the buses division is decently profitable and resilient. In our view, the company also possesses an excellent light truck position and has the opportunity to recognize real profit improvement. We also think Iveco remains an attractive takeover candidate.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund first-quarter 2022 commentary.
