FPT IVECO and FAW, a trio to which we would add VM Motori. The industrial core of Turin, linked to FIAT and Lancia cars, IVECO trucks&buses and the mechanical components (Graziano transmissions, for instance), is in turmoil.
FPT IVECO and FAW. Trucks, buses and… engines?
The formalisation of the merger between FCA and PSA dates back to 4 January and will be finalised on 16 January. Yesterday, however, Epiphany Day, rumours have been circulating about the relaunch of negotiations with the Chinese of FAW Group Corporation (formerly First Automobile Works). The negotiation concerns the three branches in predicate to get rid of CNH Industrial, namely the vehicles business, trucks and buses, as well as a minority stake in the FPT Industrial. Here are some thoughts. FPT Industrial is the flagship of the constituent company under IVECO. The announcement of the spin-off during Capital Markets Day on Wall Street dates back to September 2019. FPT as an integral part of the new road asset and external supplier to CNH Industrial at this point, for industrial applications. According to the Reuters, FAW has revised upwards its initial offer of just over €3 billion, which CNH Industrial deemed unsatisfactory. This has nothing to do with the original corporate structure of the spin-off company, an initiative that has been slowed down by the pandemic. In any case, the identikit of the potential Chinese buyer, about whom there has been much talk for years, would correspond to the automotive giant of Changchun, a Chinese town between North Korea and Mongolia.
Criss-cross in the Silk Road
In recent months Weichai has taken over Lovol, which previously strengthened its cooperation with Doosan Infracore on G-series compacts, and Deutz has advertised a return to the road following its agreement with Sany. These are just a few excerpts from the ferment that is sweeping the engine connections between Europe and China. Not to mention the fact that the China-Italy relationship is intensifying: after the acquisition of the Ferretti Group by Weichai, the Loncin approach, i.e. the investments into CMD Engines, is beginning to bear interesting fruit (see Blue Hybrid and Eco20X).
Stellantis: FCA, PSA and… VM Motori
Waiting to find out more, even though the industrial and automotive sectors have been separated since the first spin-off strongly desired by FCA former CEO Sergio Marchionne. Yet there are also some residual assets in the newly formed Stellantis constellation, starting with VMMotori. They are leaving their off-road strategies and the facility has essentially converted to a production hub for FCA’s car passengers engines. Yet some industrial OEMs continue to appreciate 2.2, 3 and 4.5 litre engines. Even in the marine sector, there is still a glimmer of space, as demonstrated by Cantieri Lorenzoni (HERE are the impressions from the 2019 Genoa Boat Show). What will become of the plant in Cento, Italy, when the merger between FCA and PSA becomes fully operational?
Faurecia and Hug Engineering
And that’s not all. Even across the Alps, they have retained a piece of technology and industrial components. While FCA sold Magneti Marelli, Faurecia, member of PSA Group, with a strong automotive identity, did not deny the industrial side. This is demonstrated by the acquisition of Hug Engineering some three years ago.