What is happening at Industria Italiana Autobus? New owner, Bologna’s plant at risk, potential partnership with Chinese CCIG

Italian bus manufacturer Industria Italiana Autobus (IIA), with plants in Bologna and Flumeri, is navigating a turbulent period following its acquisition by Seri Industrial in June 2024. The takeover has sparked concern among political leaders and labor unions, particularly after plans to shut down the Bologna plant emerged in August. Amidst worker strikes and government intervention, the situation remains tense as potential collaborations with Chinese giant CCIG introduce further uncertainty about the future of IIA’s operations and workforce.

A few steps back. Despite a quite good order book, the launch two years ago of the first electric 12-meter, the birth in Flumeri of the Industry 4.0 carbon free bus academy, the agreement with Nogebus (failed) to sell urban in Spain and Portugal, and the partnership with CaetanoBus for a hydrogen bus, Industria Italiana Autobus in the last few year has not been able to deliver vehicles. The company has been put on sale a group of Italian companies providing a manifestation of interest to become shareholder in early 2024.

Seri Industrial, new owner of Industria Italiana Autobus

In June 2024, it was officially announced that Seri Industrial, led by Vittorio Civitillo, acquired a 98% stake in IIA, effectively becoming the principal owner of the company, that until then had been owned by state companies Invitalia (43%) and Leonardo (29%) with also Turkish OEM Karsan in the ownership structure with 28%.

Seri Industrial is an Italian industrial company specializing in the production and recycling of materials for various industries, with a particular focus on the energy and automotive sectors. The company is involved in the development of advanced technologies related to batteries, plastics, and other materials.

Well, from June 2024 on, the company remained in the hands of Seri Industrial with the above-mentioned 98% and a remaining 2% stake held by Italian government-owned Invitalia, a government agency, which plays a symbolic role in safeguarding the public interest in this crucial sector of the Italian economy.

The acquisition raised eyebrows among local and national political figures, as well as labor unions. Concerns were voiced regarding the future of the company and the commitments made by Seri Industrial, particularly in terms of maintaining production and safeguarding jobs at the Bologna and Flumeri plants.

August 2024: plans to shut down Bologna plant

The tension escalated in August 2024 when Seri Industrial announced plans to shut down the Bologna plant and transfer 77 workers to Flumeri. This move, which unions saw as a breach of previous commitments, sparked outrage among workers and political leaders. The decision was perceived as a serious threat to the continuity of production in Bologna and as a violation of the commitments made by the Ministry of Enterprises and Made in Italy when IIA was sold to Seri Industrial.

In response, workers in Bologna went on strike. The union leaders condemned the decision, calling the company’s approach inadequate and warning of the broader implications for the Italian bus manufacturing sector. The strike and subsequent protests underscored the deep-seated frustration and fear of job losses among the workforce.

Following the backlash, the Italian government intervened, suspending the transfer plan and convening a meeting on September 3 to discuss the industrial plan and its implications for employment.

September 2024: Chinese CCIG participation?

What happened than at 3rd September’s meeting? Seri Industrial, under pressure from both the government and unions, withdrew its plans to close the Bologna plant and announced a new industrial plan aimed at strengthening the company. The revised plan included the hiring of 60 additional workers in Bologna, including 40 engineers for the research and development division, and the recruitment of 180 more workers in Flumeri to boost production levels.

What is crucial, potential partnership with the Chinese conglomerate CCIG was discussed. This partnership would involve a 25% stake in IIA and focus on the production of commercial vehicles.

Unions have expressed unease about the implications of Chinese involvement, fearing that it could lead to the import of low-cost components and possibly turn IIA into a mere distributor of buses manufactured in China. Despite these concerns, the commitment to maintaining industrial and employment continuity at both the Bologna and Flumeri plants was reaffirmed, with unions ready to resume protests if these commitments are not honored.