Leonardo, Iveco and the Chinese aims of Faw. Pelanda’s alarm
CNH should not sell Iveco to the Chinese group Faw in order not to weaken the military division of Iveco (CNH controls Iveco-Oto Melara with Leonardo). That's why according to the analyst Carlo Pelanda.
CNH should not sell Iveco's civil sector in order not to weaken the Iveco Defense system.
This is the opinion of Carlo Pelanda, analyst, essayist and professor of economics and economic geopolitics at the Marconi University, on the question of the CNH Industrial negotiation for the sale of Iveco to the Chinese Faw.
"Iveco Defense is not within the scope of the negotiations" between the Chinese Faw and Cnh Industrial, owner of Iveco, recalls Pelanda, "but if one goes to see the industrial reality, in terms of engineering engines there is a strong interaction between the civil and military Iveco ”and we must not leave it to the Chinese.
We recall that CNH Industrial, together with Leonardo, controls the Iveco-Oto Melara ( Cio ) consortium, leader of the national industry in land armaments.
All the details.
NEGOTIATION IN PROGRESS BETWEEN CNH AND FAW
The Chinese company Faw has submitted an offer to Cnh Industrial to acquire all of Iveco's commercial vehicle businesses, including trucks and buses, as well as a minority stake in Fpt's engine division.
At the beginning of February, the ceo of CNH, Scott Wine, told analysts: "We said that there is an ongoing negotiation, but we are far from saying that we prefer the sale option to the spin off". President Suzanne Heywood explained that CNH "is determined to implement the group separation strategy outlined during the 2019 Capital Markets Day".
Cnh Industrial has the Exor group as its main shareholder.
THE SEGMENTS OF IVECO
With the sale of Iveco, Cnh could accelerate the process of separating off-highway activities (Case Ih, New Holland agriculture, Steyr, Case, New Holland Construction, Astra, Magirus, Iveco defense Vehicles) and the on-highway part of the road ( Iveco, Iveco Bus, Heuliez bus and Fpt industrial).
Furthermore, if Iveco were to be sold to the Chinese of Faw, the cnh coffers would have over 3 billion dollars net , with a probable dividend of over 1.5 billion dollars.
GOVERNMENT READY TO EXERCISE GOLDEN POWER ON FAW?
But the offer ended up under the lens of the Draghi government. The Minister of Economic Development, Giancarlo Giorgetti, has already announced a possible adoption of the Golden Power. “It does not mean that we will adopt it, but I consider this type of production to be strategic, which can also be subject to industrial reconversion”, said Giorgetti.
THE IVECO DEFENSE VEHICLES ISSUE
According to Professor Pelanda "there is a know-how problem, Iveco Defense has a whole technology on tanks, armored vehicles are among the best in the world".
In this regard, we recall that Iveco Defense Vehicles concluded 2020 and started 2021 with two important successes.
On 30 December 2020 the Director of Land Armaments and the Commercial Director of the Iveco-Oto Melara (Cio) Consortium Company signed the contract for the acquisition of 86 units of the Blindo Armata Centauro 2 plus 10 as an option, integrated logistic support and equipment.
On 15 January, Iveco Defense also announced the award of a framework contract by the German armed forces for the supply of up to 1,048 military Trakker trucks, to be delivered between 2021 and 2028.
In light of this, on the sale of civilian Iveco there is an interaction with defense Iveco that should not be overlooked.
“The industrial technical issue is that if I reduce the Iveco civil and Iveco defense industrial complex, I will weaken the Iveco Defense system. If I want to have the ability to build large means of transport (military and civilian) in Italy, I have to keep the two realities together ”.
“More than industrial secrets, my concern is that Iveco, which is already small, if I take away the civil part as well, I have only a weakened national company left of Iveco Defense. Since there are the French and the Germans who want to eliminate the competitor Iveco for the new European tank [the MGCS program ed] and other similar vehicles, I suspected that there was another round, ”Pelanda speculated.
THE COMPETITION WITH FRANCE AND GERMANY
Also Pelanda, on the pages of La Verità , asked himself: "It is not that Germany and France see well a shrinking of the Iveco complex to reduce the profile of the military Iveco and then buy it with small change and eliminate an Italian competitor in the Franco-German plans that provide for the domination of the European military industry and EU funding? It explains why France and Germany refused Italy's entry into the consortium for the new generation European tank ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/leonardo-iveco-e-le-mire-cinesi-di-faw-lallarme-di-pelanda/ on Thu, 11 Mar 2021 09:03:40 +0000.