1. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce The Italian automotive supplying industry Observatory Giuseppe Russo (project leader) russo@step.to.it The Observatory is a project of the Turin Chamber of Commerce studi@to.camcom.it International achievements have to be based on a strong innovative policy

2. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Key numbers of automotive suppliers in Piemonte CompaniesEmployeeTurnover (‘000) Engineering & Design 13625.598€ 3.116.714 OEM 3223.261€ 4.054.727 Specialists (II Tier) 20429.169€ 4.377.476 III Tier 58463.360€ 9.167.395 TOTAL (weight on Italy) 956 (45%) 141.388 (57%) € 20.716.312 (54%) Currently, 42% of the turnover is sold to the Fiat Group

3. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Piemonte: supplier are strong exporters! +4,3% +7,4% 37% of tot. Italy 12 Mld 4,5 Mld

4. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce New challenges need new strategies No one can react alone (partnership at any level) More co-design and co- engineering even among the major global companies (ex PSA- Toyota; Fiat-TATA; ….) More R&D projects with local infrastructures (Universities, National research centers, …) More collaborations among the firms within the same cluster Increase competition (even in R&D) Faster and more demanding markets (changing model every 3 y; more facilities in basic models) New and different markets (new countries, new segments, …) New and important issues (pollution, safety, mobility, …) New role asked to the supply chain (outsourcing, more investment, R&D, co-design, …) New competitors (emerging markets)

5. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Annual survey on local and national automotive cluster Piedmont firms increase export, invest in R&D, seek aggregation models

6. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Piedmont cluster pays an increasing attention to R&D Share of the turnover dedicated to R&D. Distribution of the 370 companies

7. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Differences within the cluster depending on different profiles Share of the companies spending on R&S more than 5% of the turnover

8. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Agreements between cluster firms and local innovation infrastructures are developing very fast 50% of Piedmont based companies have “innovative products with few competitors” Companies with > 2% on R&D in the last 2 years have: Answers% on 220 respondents Own laboratories12958,6% Own specialised employees in external laboratories 5324,1% Buy laboratory services on the market 6127,7% Agreement with University(es)53 (in 2006 were only 10) 24% Agreement with research center(s) (public or private) 4118,6% Total220100%

9. 8 November 2007 – Observatory on Italian automotive industry – Turin Chamber of Commerce Enough?: No. Cooperation is the next goal to increase competition through R&D 73% of Piedmont based firms are independent companies. 88% are SME (have less than 50 mln euro annual turnover and less than 250 work unit). (30% are medium firms). In the last 5 years 1 company out of 5 has already started a marketing, design or production collaboration with another company.