Turin’s Industrial Revival: From Fiat to Million-Dollar Super Sports Cars

Turin, once an industrial powerhouse renowned for its automotive sector, has experienced a significant decline, losing nearly a third of its population over the past 50 years. With Fiat’s transformation into Stellantis and drastic workforce reductions, the city faces ongoing economic challenges. However, initiatives like the establishment of a competence center at the former Fiat site and innovations in aerospace by companies like Argotec signal a shift towards new opportunities, even as skilled workers seek better prospects abroad.

The Rise and Fall of Turin: A City of Industry

With its majestic palaces and expansive squares, Turin exudes an air of prosperity and historical significance. Once the residence of royalty and a brief capital of Italy, this city was also the industrial powerhouse of the nation, particularly known for its automotive sector.

The story of Turin’s automotive legacy began in 1899 with the establishment of the Fabbrica Italiana Automobili Torino, commonly referred to as Fiat. This marked the inception of a thriving industry that would dominate for decades.

Challenges Facing the Modern Economy

Unfortunately, the golden age of Turin’s industrial strength has faded. Over the past 50 years, the city has witnessed a significant decline, losing nearly a third of its population, which equates to approximately 400,000 residents. Currently, around 850,000 people call this city home.

Fiat has transitioned into the larger automotive group Stellantis. Once employing 70,000 individuals at the Mirafiori plant, the workforce has dwindled to just 11,000, many of whom are on reduced hours. The production numbers are staggering, with a drop from 1.5 million cars annually to a mere 22,240 by the end of September—a decrease of 68 percent compared to 2023.

Recent closures, such as the Stellantis facility in Grugliasco and the sale of Magneti Marelli to Japanese firm Calsonic Kansei, highlight the ongoing struggles. Similar fates have befallen Stellantis’ Comau subsidiary, now under the ownership of One Equity Partners, leading suppliers to also downsize or reduce hours.

In response to these economic challenges, Turin is actively pursuing new opportunities. Utilizing funds from the European recovery initiative “Next Generation,” the city has established one of eight national competence centers within an old Fiat facility at Mirafiori. This center focuses on additive manufacturing and the digitization of production processes, aiming to assist medium-sized enterprises in bringing innovative projects to market.

On the city’s northern outskirts, Argotec is making strides in the aerospace sector, developing microsatellites in a stunning building designed by Brazilian architect Oscar Niemeyer. Initially known for producing astronaut food, Argotec gained recognition through the NASA mission “Dart,” where one of their satellites successfully captured images from 11 million kilometers away, proving the feasibility of asteroid deflection.

Today, Argotec boasts over 60 million euros in revenue and employs around 200 individuals in Italy and the USA. The company aspires to cultivate a collaborative environment in the Space Park, attracting startups, universities, and research institutions. “There is no aerospace industry like in Piedmont anywhere else in Italy,” asserts founder David Arvino.

However, despite the potential for growth, many highly skilled graduates are leaving for better opportunities abroad, where salaries and career prospects are more appealing. Turin also grapples with its geographical disadvantages, as vital transport links to France have been disrupted. The region’s industrial might has shifted towards Milan and other cities in the east.

Even so, the automotive sector still represents a notable portion of the province’s economy, contributing five percent to its value creation. Companies like Michelin and Iveco continue to operate alongside smaller firms specializing in luxury vehicle components.

For example, Danisi Engineering has pivoted from relying solely on Fiat to focusing on the luxury vehicle market, developing components and simulators for high-end brands. Italdesign, founded by Giorgetto Giugiaro, remains active, creating innovative designs and materials for luxury vehicles despite its acquisition by the VW Group in 2010.

Meanwhile, Pininfarina, although diminished, has aligned with major players like Mahindra and Foxconn to develop new automotive technologies, albeit with a reduced engineering division.

As Turin seeks new beginnings, entrepreneurs like Paolo Garelli are carving out niches, such as his Manifattura Automobili Torino (MAT), which specializes in unique automotive projects for affluent clients.

While Turin may never return to its former glory, with companies like Intesa Sanpaolo and Lavazza remaining as pillars of the local economy, the city continues to adapt and innovate in the face of adversity. Entrepreneur Danisi reflects on the situation, stating that although Stellantis has announced new investments, the landscape has irrevocably changed.

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