Diesel crisis affects the Italian auto industry – Auto World

(Press review) The decline in diesel engines on the market is likely to bring the Italian industry to its knees, particularly that of components.

In the Fiat Chrysler factory in Pratola Serra, 150,000 diesel engines were produced in the first half of 2019, 30% less than in the same period of 2018. Repair will take place in 2020, given that the production of a new Euro6D diesel range, to be mounted on the Ducato. But this industrial affair is emblematic of how the Italian automotive industry is exposed to the risk of the market and production decline that is affecting diesel engines. Companies like Mahle, which in Italy announced the closure of the two plants in Piedmont specializing in the production of pistons for diesel engines, may have more. The Italian chain of diesel component manufacturers is complex, ranging from foundries, where the main parts of the engine are made, to the producers of individual components (valves, filters, etc.): according to the Observatory on automotive components we talk about over 240 companies and at least 32 thousand employees, a number that rises to 50 thousand if we consider the enlarged ancillary sector, on average one worker in three in the entire sector as estimated by Anfia. Half of them, about 25 thousand people, work on diesel engines, one of the leading products of the Italian automotive sector thanks to common rail skills. "We are facing a complex and articulated industrial transition – emphasizes Marco Stella, president of the Components Group of Anfia – and the fact that it is not guided can lead to serious consequences from the social point of view". The demonization of diesel, "in addition to creating confusion on the market, has further weakened an already weak demand – adds Stella – and this uncertainty leads many to focus on productive rationalization". The table on the car opened last Friday at Mise becomes more necessary than ever: "We made a series of proposals – concludes Stella – in support of the technological and industrial transition, we need supply policies to support the activity of individuals in industrial research and tools for reconversion, starting with training and retraining ». From 2015 to date, the European diesel car market has decreased from 51.5% to 35.4% (2018), to reach 31.5% in the first half of 2019. Gasoline cars have grown to almost 60% of the market while the family of electric and hybrid is at 7.7. Many diesel component manufacturers are reacting to the downsizing of diesel by diversifying production and expanding their skills to new engines. Not without delay – 77% of component manufacturers according to the study carried out by the Observatory on automotive components did not participate in any development project in the sector of new powertrains (electric or hybrid) – and difficulties as shown by the case of Mahle. Which unfortunately is not isolated. (…)
Filomena Greco, Il Sole 24 Ore