As announced previously, CNH has finalized its plan to gradually stop production at its Burlington assembly plant by the second quarter of 2026 due to declining demand and underutilization. The decision was tentatively announced in November 2024 and finalized Nov. 4 after completing the decisional bargaining process with the United Auto Workers.

The closure will affect about 200 employees. The company said in a press release that it remains committed to supporting impacted employees through negotiated support packages and will maintain a presence in Burlington focused on engineering and testing. 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. 

Plant closure rationale: The decision follows a 47% decline in loader backhoe demand since 2014, an important 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, the company said.

Employee support measures: CNH will negotiate separation packages with the UAW. The company said it intends to provide severance pay, continued health insurance, job training and replacement assistance.

Investment commitment: The company said the adjustments will reinforce CNH plans to invest nearly $5 billion over five years into U.S. manufacturing and research and development facilities, supporting over 8,000 American employees.