stahlmarkt European Edition 01.2013

Special: Italy K 23
Italy: Crude steel production
40
in million tonnes
30
20
27,058 28,604 29,350 31,624 31,553 30,590
19,848
25,750
28,662 28,735
10
0
(EE 130104843/3)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: worldsteel
The MOSE Flood Protection Project in
Venice, an integrated defence system
consisting of rows of mobile gates
intended to protect the city from floods
caused by the Adriatic Sea’s rising tides;
scheduled for completion in 2015 at a
cost of 5.5 billion euros.
The high-speed rail connection between
Naples and Bari, budgeted at 5.1 billion
euros and scheduled to be completed by
2020.
The 3.6 billion euros, 240 km-long Livorno-Civitavecchia
highway, scheduled for
completion in 2015.
In view of the current decline in domestic
demand, Italy’s industrial and services
sectors have become largely dependent on
export demand.
Mechanical engineering and luxury sports
cars are among the areas that continue to do
well, along with the food, tourism and
fashion sectors. Italian companies offering
high-end products in these sectors are
benefitting from the strong purchasing power
in the U.S. as well as in emerging economies.
Mechanical engineering is one of the core
sectors of Italian industry and the continued
high demand for exports illustrates that it
remains internationally competitive. In
2011, mechanical engineering production
grew 8.6 % compared to the previous year.
Yet production from January to September
2012 decreased by 4.8 %.
Demand from the U.S. and Southeast
Asian nations has maintained Italy’s exportdriven
business, although traditionally
strong exports to Europe and China have
stagnated.
Imports of machinery and equipment in
2011 increased by 7 %, but decreased
sharply from January to September 2012.
Imports from Germany dropped 8.2 %
compared to the same period in 2011.
Italian auto market
The Italian car market has shrunk more than
30 % since 2007. In 2012, the number of new
registrations decreased by 19.9 % to just
1.4 million units. This followed an 11 %
decline in 2011 to 1.75 million units. The sales
drop in 2011 hit Fiat, the country’s biggest
auto manufacturer, harder than foreign
competitors, although it was able to maintain
its market share of nearly 30 %, followed by
Volkswagen, which even managed to increase
its sales by 1.3 % in the difficult environment
to some 230,000 units for a 13.1 % market
share, making it the second most successful
automaker in the country.
Fiat’s other rivals suffered significant
declines in sales, with Peugeot, the No. 3
carmaker in Italy, down 24.3 %, GM 9.2 %,
Ford 19.5 % and Renault with a 15 % drop.
While Daimler likewise saw a 6.6 %
decrease in sales, BMW bucked the trend,
managing a 0.5 % increase, thanks largely
to the huge popularity of the Mini in Italy.
Similarly, Asian automakers enjoyed
strong sales growth – Nissan saw a plus of
17.9 %, Hyundai 20.3 % and Mitsubishi an
increase of 28.6 %. However, the three
companies combined account for only a
6.5 % market share in the country.
The economic climate worsened for the
car industry in 2012 as the recession was
compounded by austerity measures and
higher taxes.
Action plan stipulated
The collapse in demand in Italy and the euro
zone has resulted in a severe crisis for the
car industry. Roberto Vavassori, president of
Italy‘s automotive industry association Anfia,
has said an action plan to revive Italy’s
automotive industry remains an urgent task
for 2013, adding that not only was car
demand down nearly 20 %, but also that
Italian car production had collapsed in 2012.
The negative trend is seen as a reaction to
the actions of the Italian government and
the changes new policies are having on the
market, such as tax increases on petrol and
diesel. The government also raised VAT and
slapped a new luxury tax on big cars – a
move that has luxury car dealers seriously
worried. Italian manufacturers Maserati,
Ferrari and Lamborghini, which already
suffered a higher-than-average decline in
sales, will be particularly affected, as will
BMW and Daimler.
As for Fiat, the group has managed to
stay afloat thanks largely to its 59 % stake
in Chrysler. While new markets, particularly
Russia, China and Turkey, are providing new
opportunities, Fiat has put plans for a new
plant in Russia on hold due to the
deterioration in the euro zone.
stahlmarkt European Edition 1.2013