The defence industry does not live by war alone. Vavassori (ANFIA) speaks out

Two years ago, around a hundred entrepreneurs gathered at the Kilometro Rosso in Bergamo to discuss a prospect that seemed distant and challenging: emerging from the automotive crisis by reorienting supply chain companies towards the defence and aerospace sectors. In the media, the meeting was virtually ignored, but today, 24 months on, it is clear that the consultants from Ernst & Young who had organised it had seen the bigger picture. The issue is now so high on the agenda that the Confindustria associations are fully involved, and even pacifists have mobilised. In Turin, Maurizio Landini described the idea of conversion as “a load of rubbish”, and a small coalition (CGIL, M5S, the Askatasuna group) has formed, adopting the slogan “we cannot become a city that produces weapons”, echoed with the authoritative endorsement of Archbishop Roberto Repole. But where do we stand with the conversion? And what are the realistic objectives that suppliers to Stellantis or Volkswagen can set themselves in this business challenge? And how are industrialists responding to this new wave of industrial pacifism? We put these questions to Roberto Vavassori, president of the automotive and components trade association (ANFIA), based at the Kilometro Rosso. “The first thing I’d like to say is that this transition is not a retreat. We Europeans cannot afford to abandon the automotive sector and leave it to the Chinese, as happened with solar panels or consumer electronics.” The automotive industry is strategic because of the expertise it possesses, not just because of its consumer products. It involves technology, logistics, robotics, expertise in the most sophisticated materials, and electronics – all skills that are essential in today’s global competition. And these are precisely the skills the defence industry needs. “Our companies have wind tunnels and know how to use 3D printing, to name but two examples.”

But will Italian component manufacturers – who, on average, do not invest heavily in R&D and have little experience with the quality certifications required for the aerospace and defence sectors – manage to transform themselves? Vavassori is optimistic. “There are two paths along the route we’re discussing. I’d describe the first as more traditional. A company in the automotive supply chain can start supplying Leonardo or Fincantieri, entering their supply chains to add to or replace a portion of its turnover. This is already happening; there are dedicated meetings of industrialists within the regional branches of Confindustria, and I’m confident about the results. Leonardo Helicopters, for example, is launching a reshoring project in Italy worth two and a half billion on its own.” And what is the second path? “Independently developing civilian technologies that can be useful to the defence sector when needed. I’m talking about drones, autonomous vehicles, robots and materials. And a selection of companies that have expressed their willingness to develop design and supply capabilities for these solutions.”

These are new developments that ANFIA is discussing with MIMIT and the Ministry of Defence. “Not least because the way war is waged has changed following the Russian invasion of Ukraine. We have moved on from a single sophisticated device to the use of swarms of less sophisticated, more numerous and cheaper devices. In a single night on the eastern front, the two sides launched 900 drones at each other.” Vavassori gives another example: a Lince armoured vehicle costs 700,000 euros, and fewer than 5,000 have been produced over 25 years. Yet the Lince’s base platform is not dissimilar to that of the Iveco Daily, which costs 80,000 euros and has so far been produced 2.5 million times. In short, defence companies are used to working on small production runs, whilst the automotive sector operates on a very different scale in terms of volume and economies of scale. “So I disagree with Minister Crosetto when he says he has found automotive manufacturers to be expensive, slow and incapable of scaling up. On the contrary, we are competitive in terms of lead times, volumes and costs. We’re lowering prices and increasing production scale. The automotive supply chain is one that functions both when the going is good and, as in this geopolitical climate, when the going gets tough.” Furthermore, explains Vavassori, we don’t publicise these efforts; we don’t need to, and it’s better to work behind the scenes.

In Turin, and elsewhere, however, there is concern. There are fears that the region’s industrial culture will be compromised by the demands of war. And there is talk of a shift towards aerospace, whilst defence is not mentioned for the sake of appearances. “It’s clear that if newspapers, as has happened, run full-page headlines such as ‘Drone production comes to Modena’, the public may react with fear,” says Vavassori. “It is important, however, to explain that we are developing dual-use technological solutions that may also be useful to the defence industry. We are not warmongers; we are men of peace. And in any case, no one was scandalised when the civilian internet emerged from the defence sector.” Companies such as Leonardo, however, have been targeted by social centres, and Landini himself has ridiculed the shift. “I can only repeat President Mattarella’s words that security is the responsibility of every citizen. For 40 years we have delegated our security to the Americans; today that is no longer possible.” As for the leader of the CGIL, “I think he should be careful not to conjure up ghosts; we are fighting to save jobs and develop technologies.” Airbus is also used for military transport, “so does the CGIL intend to go to Toulouse and shut down the factory?” And how does he respond to criticism from the Church’s highest ranks? “As a Catholic, I agree with everything Pope Leo XIV says; however, I must reconcile my faith with being a European citizen. And I cannot turn a blind eye to both.”