Automotive Sector. Foreign Direct Investment Department Italian Trade Agency Rome. London 20th September 2016

Transcription

1 Automotive Sector Presentation by Gianmarco Giorda Managing Director ANFIA (Italian Association of the Automotive Industry) Foreign Direct Investment Department Italian Trade Agency Rome London 20th September 2016

2 Automotive industry in Italy at a glance Total turnover of 82.5 bn (5.1 of the Italian GDP) Almost 1.2 million people employed in the automotive sector (both direct and indirect) 38 bn of export 48% of the total turnover (5.1 of the italian GDP) 1 bn positive trade balance 260,000 in the production field (7% of the Italian manufacturing sector) First private investor in Research and Development with more than 3 bn invested every year 3,200 companies In Italy the automotive sector is one of the most important and lively industry in term of employment, contribution to the Italian GDP and capacity of creating technological innovations, also used in other industrial sectors. 2

3 OEM s Italian Plants Grugliasco Torino- Mirafiori Modena Sant Agata Bolognese Pontedera Sevel Cassino Melfi Pomigliano d Arco 3

4 Focus on Components industry in Italy 75% of a car today is made by parts and components (externally supplied to Car Manufacturers) Figures and facts Turnover: 40 bn (+3.6%) in 2014 Export: bn (+3.3%) in 2015 Trade balance: +5,88 bn in 2015 N of companies: 2,500 A unique and complete supply chain ( from concept to car ) Design, Style and engineering services Modules and systems Lighting and signaling devices Electrical / electronic components Components for bodyworks and interiors Engine and transmission components Steering, suspension and braking system components Italian technological excellencies CNG (Compressed Natural Gas) and LPG (Liquefied Petroleum Gas) systems Powertrain technologies Connected and autonomous driving technologies Engineering, Design & Styling Source: ANFIA; Italian Automotive Report 2015 Ed. 4

5 Focus on components industry Companies and Clusters 1. Piemonte (37.1%) 2. Lombardia (18.5% 3. Emilia Romagna (9.6%) Many Italian branches of multinationals Medium Italian companies are growing Large majority of small and micro companies mostly active in sub-supply sector Clusters Subsuppliers Specialists Source: ANFIA; Italian Automotive Report 2015 Ed. 5

6 Forecasts of MVs Domestic Production and Passenger Cars sales MVs PRODUCTION The volume of production in Italy will increase in the next years (from 1mil in 2015 to 1.2 in 2020) with a higher weight of premium cars in the mix of cars built in the italian plants Source: Business Monitor International s Forecast, July 2016 PCs SALES The automotive market in Italy is steadily recovering in all sectors (Passenger cars, Light commercial vehicles, Heavy duties) Source: IHS Automotive, July

7 Investment Drivers Why invest in the Italian automotive sector Presence of a complete supply chain in the supply chain ("from concept to car ) A business enviroment made up of small/medium companies with high level of technological innovations: right target for Joint venture or acquisition operations High professional skills at competitive costs in comparison to other european industrialised countries (France, Germany etc.) Suitable and cost effective existing locations for automotive projects both for brownfield and greenfield investments Excellent Universities with specific know how and dedicated paths for career in the automotive sector (ie. Automotive Engineering for Polytecnic Universities of Turin) Strong and proactive collaboration beetween industry and Italian Government in fostering and supporting foreign investments in Italy 7

8 Case history of greenfield investment General Motors Started in 2005 with 60 people, General Motors Global Propulsion establishes strategic partnership with Politecnico di Torino on research and education. GM GPS Torino has a global role: Diesel engines development Diesel hybrid development Diesel controls development Diesel controls system and subsystem definition : Construction phase It steadily grows reaching 660 direct employees at the end of 2015 with annual growth of 25%. Currently, it ensures an yearly investment of 10M at suppliers facilities and 20M for goods and services Final Result Why investing in Torino? Existing Hi-Tech Competences Mechanical, Electronic, Avionic and Bio-Engineering Existing a strong Infrastructure and Supplier Network Avionics, Automotive, Electronic, Automation Existing a continuous Know-How Development Research Centers Public and Private Politecnico of Torino International Accademy Network Why staying in Torino? The initial investment has an high ROI because of continuous development and technical growth The structure and investments are integrated globally and the results are used globally Good dialogue with the territory and with Local and Regional Government Resources have good preparation, cultural flexibility and are available 8

9 Case history of Acquisition - Pininfarina In 2015 Tech Mahindra Limited, a a $ 3.9 Billion leading provider of IT, Networks and Engineering solutions and BPO services, and Mahindra & Mahindra, part of the global $ 16.9 billion Mahindra Group, have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A.. Why acquiring Pininfarina? Pininfarina s uniqueness, skills and know-how in the automotive sector as well as the added value of having its roots in the Turin district, a territory featuring competences hard to find elsewhere Pininfarina is well positioned in design/engineering businesses in Europe, US and China Strong Competencies in Aerospace, Consumer Electronics, Architecture & Interiors and Transportation where they already have a strong footprint Benefits for Pininfarina? Pininfarina will be stronger and better positioned to expand, grow and continue delivering high-end services Leveraging Tech Mahindra's presence across 90 countries and access to about 780 customers. As a consequence, benefits for Pininfarina will automatically translate into benefits for the entire Turin district. 9

10 Italian Trade Commission Trade Promotion Section of the Italian Embassy Sackville House, 40 Piccadilly London W1J 0DR tel londra@ice.it fdi.london@ice.it Italian Trade Agency Via Liszt, Roma tel fdi@ice.it Thank you for the attention Gianmarco Giorda Managing Director ANFIA Italian Association of the Automotive Industry Corso Galileo Ferraris, Torino Tel.: g.giorda@anfia.it 10

11 BACK UP SLIDES

12 Domestic production of Motor Vehicles Volums and % chg y-on-y % chg 2014/ % chg 2015/2014 Jane/June 2016 % chg 2016/2015 Passenger cars 388, ,317 +3,3% 663, ,2% 372,869 +8,6% Light trucks 236, , ,8% 317, ,2% 179, ,1% Total Light Vehicles 624, ,287 +7,7% 980, ,8% 552, ,0% Trucks&Buses 33,702 25,577-24,1% 33, ,8% 20, ,0% Motor Vehicles Total 658, ,864 +6,0% ,3% 572, ,3% Source: ANFIA

13 Industrial production of automotive sector Index (2010=100) Jan/June 2016 Industrial Production Total 91,9 91,3 92,3 95,3 Automotive Industry 81,8 84,7 107,5 118 Industry of Motor Vehicles 78,5 85,4 121,7 136,8 Industry of Body builders, Trailers/Semitrailers 104,9 103,4 120,7 145,7 Industry of Components and Parts of MV 82,7 82,6 91,5 94,5 % chg year on year Industrial Production Total -2,7-0,7 1,1 0,8 Automotive Industry -4,1 3,5 26,9 6,0 Industry of Motor Vehicles -2,0 8,8 42,5 8,3 Industry of Body builders, Trailers/Semitrailers -5,7-1,4 16,7 28,7 Industry of Components and Parts of MV -5,4-0,1 10,8-1,7 Source: ISTAT, July 2016