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Automotive has been the backbone of Piemonte’s industry for decades. The challenge that European producers are facing as the transition to electric mobility is inevitably weighing on the regional automotive ecosystem, particularly in Turin.

One company that is bucking the trend is Italdesign, the Turin-based engineering and design powerhouse founded by Giorgetto Giugiaro and sold to Germany’s Audi in 2010. The company, which employs 1200 people worldwide, with 1100 of them in Turin, is looking at another year of growth, with revenues expected to reach a record high of more than €300m in 2024, CEO Antonio Casu tells fDi Intelligence. He argues that the company’s success remains tied to the local automotive ecosystem, as Italy is the “best-cost country” for automotive today.  

Q. What’s your perspective on the current situation of the automotive industry in Turin and Piemonte? 

A. Many countries in the developing world that didn’t have a culture in automotive are pushing at a government level to establish local vehicle production as this brings big investment, the development of a local value chain, and local skills and jobs.

Italy had all of this and we let it slip from our hands to some extent. At Italdesign, we are trying to resist the commoditisation of engineering and design services. Good engineering is not something that can be bought anywhere at any price. Quality has value, and we strive to keep up with quality and the added value we offer to our clients. 

Q. What’s the appeal of Piemonte’s automotive ecosystem today? 

A. Italy as a whole is the best-cost country for automotive. The combination between the skills we can offer and their local cost is unmatched. Others can offer lower costs per hour, but if the quality is not there: the client may have to spend more time working with the supplier, which in turn may ultimately cost it more. 

Q. To what extent does the transition to electric mobility of a regional automotive cluster largely rooted in combustion engine technologies remain a challenge? 

A. We have observed the automotive industry go through peaks and valleys that mirror the development of things like new models, new production platforms and new regulations. We prepared for the next possible downturn by differentiating our offer of engineering services, strengthening the vertical of car electric and electronics that was not necessarily in the DNA of our company, which was more oriented towards mechanical engineering.

This is a strategy we have implemented since 2017 and, today, the electric and electronics pillar is as strong from a skills and results perspective as our more traditional pillars.

Ultimately it’s about expanding our competences. We are not starting to work on something we have never done before. It’s different, but we have always had the ability to integrate and create functional solutions for vehicles that meet peoples’ tastes. 

Q. As regards integration, you have been a promoter of the ‘vehicle valley’ initiative to support the local ecosystem in embracing the perks and perils of the current transition.

A. The ‘vehicle valley’ is born with the idea of bringing together the top-quality skills and companies available in our geography across mechanics and automotive. It’s a way to build that critical mass to make an impact and convey to anyone interested that Turin can offer the solutions it is looking for. In Piemonte we have a culture of craftsmanship, also in automotive, which combines with our passion for cars. We like to work and we want to work with anyone that acknowledges and values the competences of our ecosystem. 

This article is part of the Special Report:
Piemonte's next industrial horizons
Read more articles from the report