Towards the automotive electrification in Italy and the 3S: State, Stellantis and Suppliers

Compared to other European countries, the Italian automotive industry has at least five anomalies. First of all, unlike the German, French, Spanish, English, Slovak, Czech (to mention the major European producer countries), it is the only one whose production depends heavily and structurally on the orders of a single national producer (Stellantis). The second and third anomalies concern, respectively, the small size of enterprises in the supply chain and the membership of large groups predominantly foreign. The fourth anomaly depends, even if only in part, on the first three: Italian suppliers invest less than their European counterparts in Research and Development (R&D). The last anomaly is the dependence on German and, to a lesser extent, French producers for exports, despite a growing picture of diversification of customers and markets. It is evident how the combination of dependence on Stellantis and German OEMs makes the Italian automotive system extremely exposed to the choices of a few but important players. If production volumes remain at current levels and the product mix does not favour electric vehicles, it will be very difficult to imagine a recovery in the Italian industry in the near future. This, independently from the choices of the Italian suppliers on the strategic plan, market and technological. Electrification can open new business opportunities, also and above all for companies that already operate in Italy successfully on the front of electrical and electronic components. In some areas of the country, such as Lombardy, these opportunities are already bearing fruit. To seize these opportunities, however, it is necessary an effort of the Country system and, in particular of the public decision-maker, in order to undertake industrial policy actions aimed at: ?to support companies that in Italy demonstrate their ability to innovate to make their investments in R&D and production competitive with those of their international counterparts (this should concern companies already operating in Italy, such as Vitesco or Bosch, which have been put in difficulty by the collapse in demand for products produced in Italy); ?facilitate the development of investments in components/systems related to the production of electrified vehicles; ?To encourage the production of new OEMs in Italy, as has been done recently in Germany.