21/05/2025
Automotive SMEs in the 'perfect storm
Michele Maestroni
Between declining production, slow electricity and trade tariffs, the excellence of Made in Italy is going through an unprecedented crisis. But instability can offer opportunities not only to entrepreneurs, but also to investors and capital market players
Falling production, a transition to electric cars that is struggling to take off and, now, trade duties imposed by the United States. The automotive sector is going through a perfect storm that is blowing hard on small and medium-sized Italian companies, the backbone of the Italian economy and an excellence recognised throughout the world. A scenario that, in the search for financing, worries not only entrepreneurs but also investors, for whom the capital market increasingly resembles a puzzle to be solved and is characterised by a volatility that, from the pandemic crisis onwards, shows no sign of abating.
‘Despite the fact that the markets have recovered the losses recorded after the announcement of the duties in April, it remains difficult for companies to make important investment decisions when they do not know if and when a new shock is coming,’ explained Paolo Basso, managing director of Morgan Stanley, during the round table on SMEs and the capital market held on the first day of Autopromotec 2025. From a point of weakness, economic instability and uncertain global policies can become a point of strength for companies that know how to seize the moment to innovate.
Constantin Terzago of Mutares, who looks at the development of the aftermarket, is convinced of this: “The sector has shown great resilience, because it is no longer limited to spare parts but has expanded to the complete supply of services, from software to updates,” he reiterated. "A change that also gives satisfaction in terms of revenues, especially at a time when volumes in the electrics sector have not gone as expected". The crisis does not seem to be stopping internationalisation, which has remained the natural vocation of Made in Italy. And it is in cross-border operations that the capital market (from the more traditional bank credit to the novelty of private equity) remains an essential driving force, stressed Simest Export Manager Carolina Lonetti and Crédit Agricole Manager Marco Perocchi.
With an eye on Industry 5.0 incentives and the transformations brought about by artificial intelligence. Novelties that, however, cannot be grasped without “a certain type of culture,” warned the CEO of Warrant Hub, Lorenzo Bellelli: “On this front, there is still little regulatory clarity in Italy,” he said, "but the race for machinery must be accompanied by training for companies and new thinking".
‘Despite the fact that the markets have recovered the losses recorded after the announcement of the duties in April, it remains difficult for companies to make important investment decisions when they do not know if and when a new shock is coming,’ explained Paolo Basso, managing director of Morgan Stanley, during the round table on SMEs and the capital market held on the first day of Autopromotec 2025. From a point of weakness, economic instability and uncertain global policies can become a point of strength for companies that know how to seize the moment to innovate.
Constantin Terzago of Mutares, who looks at the development of the aftermarket, is convinced of this: “The sector has shown great resilience, because it is no longer limited to spare parts but has expanded to the complete supply of services, from software to updates,” he reiterated. "A change that also gives satisfaction in terms of revenues, especially at a time when volumes in the electrics sector have not gone as expected". The crisis does not seem to be stopping internationalisation, which has remained the natural vocation of Made in Italy. And it is in cross-border operations that the capital market (from the more traditional bank credit to the novelty of private equity) remains an essential driving force, stressed Simest Export Manager Carolina Lonetti and Crédit Agricole Manager Marco Perocchi.
With an eye on Industry 5.0 incentives and the transformations brought about by artificial intelligence. Novelties that, however, cannot be grasped without “a certain type of culture,” warned the CEO of Warrant Hub, Lorenzo Bellelli: “On this front, there is still little regulatory clarity in Italy,” he said, "but the race for machinery must be accompanied by training for companies and new thinking".
