LA VISCOSITA' NELLE VERNICI

 

TATA MOTORS AQUIRES IVECO: 
will there be repercussions for the paint industry?

Tata Motors Announces €3.8 Billion Takeover Bid for IVECO's Commercial Vehicle Division

On July 30, Tata Motors announced a voluntary public offer worth €3.8 billion to acquire IVECO's entire commercial vehicle division—including trucks, buses, and powertrain—excluding the defense division, which was sold for €1.7 billion to the Italian group Leonardo. Tata Motors, an Indian multinational headquartered in Mumbai, was founded in 1945 and is now one of the world’s leading manufacturers of automobiles and commercial vehicles.

Among its most renowned brands are Tata, Jaguar, and Land Rover, the latter acquired in 2008.

Under the terms of the agreement, Tata has committed not to shut down any plants, carry out layoffs, or implement drastic restructuring for at least two years, while maintaining IVECO’s headquarters in Turin (Italy).

The scale of this acquisition raises concerns, particularly for the ecosystem of companies tied to IVECO’s production, especially those in the paint and coatings industry—suppliers of paints, equipment, and painting lines.

The Strategic Importance of Painting in Commercial Vehicles: Function, Process, and Economic Impact

Painting is a crucial stage in the manufacturing of commercial vehicles—trucks, vans, and buses—playing a role far beyond aesthetics. It is essential for the protection, durability, and commercial value of the vehicle.

In a global industrial context where manufacturers like IVECO operate internationally, the paint and coatings sector plays a strategic role in the broader industrial supply chain, involving hundreds of specialized companies.

The painting process is critical for several reasons:

• Anti-corrosion protection: Commercial vehicles are constantly exposed to weather conditions, chemicals, dust, and temperature changes. Paint serves as a protective barrier against corrosion of the body and chassis, extending the vehicle's lifespan and maintaining its structural integrity.

• Safety and visibility: High-visibility colors, reflective films, and specific coatings enhance road safety—especially for vehicles operating at night or in adverse weather conditions.

• Corporate identity and customization: Painting enables the application of custom liveries, corporate logos, identification numbers, and other visuals crucial to branding and recognition.

The Painting Cycle: A High-Tech Process

The painting cycle for industrial vehicles is complex and must ensure durability, mechanical resistance, and finish uniformity. The process unfolds in several phases:

1. Surface preparation: Includes degreasing, sandblasting, phosphating, and other surface treatments.

2. Primer application:

   • Epoxy or acrylic-polyurethane primers

   • Promote adhesion of subsequent layers and provide initial corrosion protection

3. Color application ("direct gloss"):

   • Acrylic or two-component polyurethane paints

   • Available in metallic, matte, gloss, or special-effect finishes

It is estimated that hundreds of Italian companies are directly or indirectly involved in supplying paints, coatings, and painting systems for the commercial and industrial vehicle sector, making them an integral part of IVECO’s supply chain.

Fiat-Stellantis has divested IVECO, a long-standing and well-established Italian brand, which continues to show strong performance and positive sales trends. Since its separation from CNH Industrial in 2022 and its establishment as an independent entity, IVECO's revenues have consistently increased—surpassing €15 billion in 2023 and remaining at similar levels in 2024.

We have seen the consequences of Stellantis’ management on Fiat's Italian operations in recent years: layoffs, furloughs, and record-low production levels. Italian companies in the paint sector, which contributed through innovation and technology to Fiat's legacy, have suffered the consequences of this short-sighted and ultimately damaging approach.

One example is the case of PPG in Quattordio (Alessandria), which manufactures OEM automotive paints and, due to the crisis in the automotive sector, has laid off dozens of workers in recent years.

IVECO currently provides a vital outlet for Italian paint and coating companies. The hope is that Tata Motors’ acquisition will not disrupt the company’s positive momentum and production output, continuing instead to offer growth and consolidation opportunities for Italian manufacturers of paints and painting systems.