Italy’s car part makers see their small size as a risk in Stellantis merger -survey -Breaking
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© Reuters. MILAN, (Reuters) – Italian suppliers of car parts see their average size as struggling to adapt industry changes after the merger between Fiat Chrysler and France’s PSA. Stellantis was formed earlier in this year. This is according to a lobby survey that was conducted on Thursday.
To accelerate the shift to lower-emission vehicles, global carmakers have invested billions. This has pushed parts manufacturers to improve their production. Electric engines require fewer and sometimes different components to traditional combustion engines.
Most Italian part suppliers surveyed in an ANFIA survey did not offer a definitive judgment on the effects of Stellantis’ creation, which is now the fourth largest automaker in the world.
However, it revealed that a majority thought their sizes could make them feel under more pressure by the larger carmakers to adjust to their demands.
Marco Stella, head, components sector, ANFIA said that “there is a problem of size” and pointed out that Italy didn’t have large suppliers of car parts like Germany.
“Small-sized companies are less able to meet industry challenges.”
According to the survey, however, many people still see the merger as a possibility, especially for greater market access that the group can ensure.
Francesco Zirpoli, a professor at Venice Ca’ Foscari, contributed to this report. He said that the future of Italy’s auto part suppliers will be closely linked to Stellantis’ management of the overlap in its supply chains for PSA European and Fiat Chrysler.
“Italian car parts makers are struggling to update their offer through R&D investments,” he said.
According to the report, there were around 2200 Italian companies involved in car parts manufacturing. The industry had a total turnover of close to 45 billion euro ($52 billion). It was 42% that came from Stellantis.
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