Stile Bertone goes independent

Mon, 28 Apr 2008

Stile Bertone is to forge an independent future under a new managing director by splitting with its coachbuilding arm and following a new business strategy. The changes were rubber-stamped at a meeting in Turin on Monday. The new managing director is former Aprilia CEO Teresio Gaudio, who has been a consultant to the Bertone family while the future of the business was sorted out.

Stile Bertone's design chief David Wilkie continues under the new structure. "I'm really pleased we've got stability at last and can start pushing the business forward," said Wilkie.

Gaudio says that, legally, the two main Bertone businesses - design house Stile Bertone and contract manufacturer Carrozzeria Bertone - have always been independent. But since Carrozzeria went into the Italian equivalent of Chapter 11 protection last year, Stile Bertone has been caught up in the financial troubles.

Potential buyers of the factory were thought to be likely to be interested in the styling studio too, but that link has now been broken.

"We will now start to re-establish and market Bertone to the world's carmakers as one of the premium design and engineering centers in the world," says Gaudio. "While there have been question marks over the stability of the company it has been difficult to pitch for new business."

The Bertone family has agreed to put previous differences behind them and under the new structure for Stile Bertone, Nuccio Bertone's widow Lilli retains her 49.5 percent, but a second family holding company, LIMBE, which owns the remaining 50.5 percent, is under the control of the Italian courts. "For at least two to three years and maybe more," says Gaudio.

LIMBE was jointly-owned by Lilli and her two daughters and disagreement with one of the daughters meant that a new strategy couldn't be voted through the board.

Gaudio, a 70-year old auto industry veteran who once ran Tier 1 acoustic systems supplier FIAM, has a new business plan with two clear thrusts - to cut overheads and increase revenue.

Stile Bertone's workforce has already been reduced from 130 in July 2007 to 95 today. It will go down to 80 by the year's end. All of these jobs will go in the fabrication departments, as part of a plan to win more high-value design and engineering work rather than prototype-building and one-offs. "We will still do this type of work, but the global car industry needs less of it," says Gaudio.

A key aim will be to find a car-maker in emerging markets to fill the gap left by Chery of China. Gaudio says some of Stile Bertone's current troubles can be traced back to 2006 with the loss of contracts with Chery. When former boss Roberto Piatti left to set-up Torino Design, Chery went with him.

Stile Bertone has been unprofitable since 2005 and it won't be in the black until 2010, according to Gaudio, despite the new business plan.

"We will have to work hard to win new contracts and it's a tough business. Western carmakers are only using consultants to add temporary capacity. The real need for creative thinking is in Asia - China and India - where our expertise is really valued."

Stile Bertone is in the midst of two Chinese contracts together worth 3.3m Euros. One is with Chang'An for exterior and interior design of a small sedan and another new truck for CAMC. Another new project is on the go for a Turkish truckmaker. It recently finished a truck for Tata of India, and built the Saab 9-4X concept show at the Detroit Auto Show.

The future of Carrozzeria still hangs in the balance while the Italian courts auction off the site with the aim of finding a buyer who will also re-employ its 1300-strong workforce. In the meantime all the staff are being paid by the Italian social security system. Seven bidders are said to be vying for the business, including Chinese company First Auto Works and Italdesign. The factory last built a car when the final Mini Cooper JCW GP rolled-off the line in 2007. It has theoretical capacity for 70,000 units.