Fiat has just announced the creation of Fiat Powertrain Technologies, a new industrial operation that will integrate all Fiat Group’s activities, innovation capabilities and expertise in engines and transmissions.
The new company will operate in 12 countries with 26 plants and 16 research and development centres, and will combine the resources, employees and activities of Fiat Auto Powertrain, Iveco Powertrain, Magneti Marelli Powertrain (including Motor Sport), Iveco Motoren Forschung, and the powertrain research activities of Fiat Research Centre and Elasis.
Domenico Bordone, currently Magneti Marelli CEO, will be appointed CEO of the new company, which will have its headquarters in Turin.
Fiat Powertrain Technologies, which is expected to have considerable future growth potential, will start operating with annual revenues of 6 billion euro, 20 per cent of which will be from non-captive customers.
It will employ over 23,000 employees: 11,000 drawn from Fiat Auto, 7,200 from Iveco, 3,800 from Magneti Marelli Powertrain and over 1,000 from the Fiat Research Centre, Iveco Motoren Forschung and Elasis.
A new Fiat Group business is born
With an annual output of over 2,200,000 engines, some 2,000,000 transmissions, and an extensive range of both power outputs and applications, Fiat Powertrain Technologies will be one of the most significant players in the automotive world.
The ability to operate in an integrated way across a larger number of cutting-edge research and engineering centres, will bear significant advantages in the development of highly innovative and competitive products, as far as performance and costs are concerned.
Business activities will be managed according to the following strategic guidelines:
- Development of markets outside Fiat Group;
- enhancement of centres of technological excellence and systematic transfer of results to the product range;
- integration of engineering capabilities from product development to the testing phase, to product life-cycle management;
- synergies of the industrialisation and manufacturing process;
- synergies in purchasing thanks to innovation, technological rationalisation and larger volumes;
- greater focus of R&D investments for environment-friendly powertrains, such as methane, hybrid, fuel-cell.
“This new business, which represents a fundamental step in the relaunch of the Fiat Group, will allow us to operate with greater flexibility and to leverage on the huge potential – particularly in the non-captive market – that up to now has been divided into different units,” said Sergio Marchionne, Fiat Group CEO.
“The integration of activities, products and highly qualified people will allow us to fully express Fiat Group’s great technological and innovation capabilities.
“In Fiat’s history, our competence in mechanical engineering and power unit production in particular, has always been undisputed in the automotive world.
Diesel engines are an example, to name but one. In fact, at the new company, a group of high-profile technicians, who have been working for years on racing engines, including Formula One, will be devoted to the development and engineering of high performance engines.
“Thanks to the synergies and efficiencies that will soon be found, Fiat Powertrain Technologies will significantly contribute to the improvement of the profitability of the Group, which, thanks to this new company, will be able to operate across international markets with renewed vigour and strength.”