CNH Industrial N.V. (NYSE:CNHI) Q4 2023 Earnings Call Transcript

Scott Wine: I’m joking. No, we certainly — we’re very, very focused on delivering value for our customers, and we expect to be maintaining price in that environment.

Operator: And the last question comes from Larry De Maria at William Blair.

Larry De Maria : So Tami asked the question, you answered obviously, specifically to South America. And I guess when we think about – we talk to clients, the biggest [indiscernible] case is obviously somebody we view on the cycle, which can differ. And then as pricing going negative from the group after a number of years being very, very strong, right? But now we’re going to a period where the market softer pricing has been parabolically up and used pricing is weakening, which impacts the ability to trade down one, down two levels. So I think you answered it, but just – in other words, I was going to add for your commitment on no new taxes or no pricing cuts, but you really – your belief and the ability for the market to handle that over the next year or two with used equipment pricing going negative.

Scott Wine: I was a bit joking with Tami. But I mean literally, the term negative pricing doesn’t – we just don’t talk about it. And I think the way to think about it is our cost, we’re driving cost down, but inflation – lower inflation is still inflation. I mean what drove our pricing so high was a dramatic increase in input cost. And those input costs have not gone negative and aren’t giving us a bunch of room back that we can discount. If that does happen, and we see massive disinflation, I will absolutely share that with our customers. But that is not what we’re seeing. And again, I don’t think it’s in anybody’s interest to go – to take that route, and we’re certainly not.

Operator: This now concludes the call. Thank you for participating. You may now disconnect.