CNH has officially expanded its research and development capabilities with the opening of a new virtual engineering ecosystem and an automated AutoStore logistics center at its San Matteo R&D campus in Modena, Italy. The combined €21 million investment is designed to accelerate machine development, improve product quality, and transform spare parts distribution through advanced robotics and digital simulation.
Rather than simply adding new facilities, CNH is building a development model where virtual validation becomes the primary stage of engineering, allowing many technical challenges to be solved before the first physical prototype is produced.
Digital twin development
The centerpiece of the investment is a comprehensive virtual simulation environment built around digital twin technology. Engineers can now evaluate machine performance, identify design issues, and optimize vehicle behavior in a fully simulated environment long before hardware enters production.
According to CNH, this approach can reduce product development time by more than 30% while lowering engineering costs, minimizing prototype iterations, and reducing emissions generated during physical testing programs.
The new ecosystem integrates several complementary technologies into a unified development workflow instead of treating simulation as an isolated engineering tool.
Three advanced testing platforms
The virtual engineering center combines three specialized validation systems.
A dynamic driving simulator places an operator inside an immersive six degree of freedom motion platform capable of reproducing realistic vehicle behavior. Engineers can evaluate handling, control systems, operator ergonomics, and software before physical machines exist.
The second component is a multi dynamometer laboratory where engines, electric powertrains, and other drivetrain components are tested inside a controlled environment while interacting with virtual machine models. This hardware in the loop approach allows developers to validate increasingly complex mechanical and electronic systems under repeatable conditions.
Completing the facility is an advanced sensor testing track designed specifically for autonomous technologies. The installation reproduces different weather conditions while providing highly repeatable testing scenarios for cameras, radar, LiDAR, GNSS, and other perception systems used in automation and advanced driver assistance functions.
AutoStore transforms spare parts logistics
Alongside the engineering investment, CNH has commissioned a fully automated AutoStore warehouse to strengthen its global aftermarket support network.
The robotic storage system is designed to supply spare parts within 24 hours to more than 1,200 dealers and service locations worldwide.
Performance improvements compared with the previous warehouse are substantial. Average retrieval time has been reduced from approximately 15 minutes to less than 30 seconds, while throughput reaches up to 550 parts per hour.
CNH also reports a 70% increase in storage density, an 85% reduction in manual physical workload, and annual energy consumption that is approximately 93% lower than the previous logistics system.
Why the investment matters
The announcement reflects a broader transformation taking place across the off highway equipment industry. Manufacturers are increasingly investing not only in more advanced machines but also in digital infrastructure that shortens development cycles and improves customer support after equipment enters service.
Simulation driven engineering allows manufacturers to validate software, autonomous systems, precision guidance, and electrified powertrains much earlier in development. At the same time, robotic logistics directly improves equipment uptime by reducing the time required to deliver replacement parts.
From a technical perspective, combining these two investments under one strategy is arguably more significant than launching a single new machine. Faster virtual validation shortens innovation cycles, while automated parts distribution helps maintain productivity throughout the equipment’s operating life. As tractors, construction equipment, and autonomous platforms become increasingly software defined, investments in engineering infrastructure may deliver greater long term competitive advantages than incremental increases in engine power or hydraulic capacity.
About CNH
CNH is one of the world’s largest manufacturers of agricultural and construction equipment. The company owns globally recognized brands including Case IH, New Holland Agriculture, STEYR, CASE Construction Equipment, and New Holland Construction. CNH operates manufacturing facilities and research centers across multiple continents, serves customers in more than 170 countries, and employs approximately 40,000 people worldwide. The company reported annual revenue of approximately $19.8 billion in 2025, making it one of the industry’s largest agricultural machinery producers.
Source: media.cnh.com
