Auto Design

Italy, August 6th, 2009.

The Bertone Saga is coming to an end these days as the Italian government has reviewed the very few offers presented from five bidders, only three of which met the procedure formality and the expectations of the Appointees (namely: granted a job to all Carrozzeria Bertone workers).

The job of Minister Claudio Scajola was simple and easy. Perhaps just a formality.

The first of the three bidders that made it to the deadline was interested just in the premises and facilities of the coachbuilding industrial complex of Carrozzeria Bertone; one only wanted the Bertone brand name, logo and Archive; the third one wanted both.

The first two are the winners: Fiat and Mrs. Lilli Bertone.

The looser is by Gianmario Rossignolo, a past Fiat executive and more recently the CEO of Telecomm Italia, who had a plan for the production of a range of luxury, and by Fiat.

Rossingolo was indeed the first to discuss with Lilli Bertone, back in 2007, the purchase of Carrozzeria Bertone before a quarrel among Bertone’s stakeholders and family members precipitated the whole business in a legal nightmare. It all started in December 2007 and has lasted too long, through the deadline eventually set by the three Government Appointees. The long procedure cost the company’s workers and its stakeholders an awful amount of drama, concern and money.

The minister commented, in a written note, that the decision “will grant the future of an historic Piedmontese plant. Fiat plan is based on the return of all the 1137 workers still on the payroll of Carrozzeria Bertone to their job, …and the production of some Chrysler model”.

Fiat confirmed that its plans call for the production of niche-models (sport cars and luxury sedans) with Chrysler’s brand names and said the plans call for some €150m to be invested in the new Fiat boutique-factory in the next three-years.

The blitz in three weeks, after two years of fiddling.

The ex-Bertone factory was bidden for by Fiat only three weeks ago. Up to few days before the mid-July deadline Fiat showed no interest into Bertone. At the launch of the Fiat Cinquecento, in July 2007, Sergio Marchionne officially conceded that in the previous months Fiat had discussed with Lilli Bertone a deal that would save Carrozzeria Bertone, but negotiations came to nothing and Fiat was no longer interested.

However, today it appears that time, and a combination of strategy and politic development, have recently reshuffled the cards in favour of Fiat. On one front the chance of actually having something to produce at the ex-Bertone on behalf of Chrysler or Tata, on the other front an attractive price [just as much as it is needed to pay 100% the only debit owed by Carrozzeria, some € 15 million owed to the work-force to be liquidated].

On the back-ground the chances to get a fat share of the € 900million that some Italian regions, including Piedmont, home to Fiat and Bertone, are putting on the table to help the re-vitalisation of the regional automotive industry.

HOW AND WHY CZAR SERGIO MARCHIONE TOOK CARROZZERIA BERTONE IN THREE WEEKS.

Reportedly, Sergio Marchionne decision was facilitated by Mr. Giuseppe Perlo, a past Fiat Auto executive and one of the three experts appointed to the “Special Administration” of Carrozzeria Bertone. It was Perlo who guided Mr. Marchionne through a quick tour of the Carrozzeria Bertone factory on Sunday the 12^th of July, just four days before Fiat presented his formal offer.

After months and months wasted with bureaucratic procedures and endless discussions, a recent offer presented by Fiat at the last minute, seems to bring the problem, born out of a family feud, to a closing, with Fiat buying the Carrozzeria Bertone plant at a fraction of its value.

Many have questioned the Fiat’s move and speculated about it.

Indeed Fiat has many plants that are closed or closing in the Turin area and there is no news that the company has any new (niche) product(s) in the pipeline that could be profitably built at “Carrozzeria Bertone” plant in Grugliasco.

Bertone’s modern water paint shop (still one of the most efficient in Europe) has a potential of 70,000 units per year and this is the number of complete cars can efficiently deliver. The plant has higher assembling capacity.

Insiders suggest that Fiat, who declined to help Bertone out of its lack of manufacturing contracts, early in 2007, decided last month to make an offer for the industrial facilities for reasons such as:

• It can get them at a bargain price;
• Just the very modern and efficient painting shop is worth a lot more money and can be used very well used by Maserati and Ferrari as well as for other low-volume production;
• The Bertone facilities might produce the European version of the Tata Nano, now under development and testing at Fiat’s Brazilian operation, according to Italian news agency Ansa.
• In the medium and long term the area onto which the factory is built might be converted into a major (and very profitable) commercial real-estate development.

Bertone Stratos, designed and built for Lancia – Fiat Panda, designed by Stile Bertone.