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Enigma variations
Page 32
Page 33
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Iveco's new CEO, Jose Maria Alapont, joined the Italian truck builder
with a formidable reputation — Andy Salter assesses his prospects.
As a global player in the truck business Iveco is, to put it mildly, something of an enigma. Here is a company competing in markets throughout the world with varying degrees of success.
Take Europe: in the southern states — Italy and Spain, in par ticular —it leads the market in most sectors; in France it does well with its Daily van range but struggles elsewhere. And in the UK it led the middleweight sector until very recently, but has massively underperformed in other areas, Look around the rest of Europe and it's the same story: pockets of sound performance in some sectors offset with poor performance in others.
Unlocking Iveco's undoubted potential as a vehicle and engine builder is not a straightforward task: a stream of senior managers show that this subject continues to trouble the board at parent company Fiat.
And now a new CEO has been brought in. Jose Maria Alapont joins the Italian automotive giant from Delphi, one of the world's leading component suppliers. He comes with a reputation as a tough cookie who is driven by results and demands that those around him share his determination to succeed.
When we mentioned his appointment to sources at a wellknown transmission manufacturer eyebrows wereraised."He's a very tough customer," we were told by someone who'd dealt with him in his former position. But he will get results. Iveco will be a very different company under his stewardship."
Six months on and that prediction is proving right. Iveco insiders tell us he's been setting a punishing schedule: those around him are expected to deliver, and deliver fast. As a measure of the pressure on his time our interview appointment is set for 730am in a hotel in Stratford. We're granted exactly one hour of his time; the only slot available after months of trying.
Not everyone Alapont deals with is over-enamoured with his style. It's a far cry from the financedriven approach of his predecessor and the laid-back style of other Iveco senior managers — but we sense he's gaining the respect of those within the company.
He comes across as a thoughtful individual, measuring his responses to our questions carefully. He's certainly not about to unveil all the company's secrets in one meeting. Sharply dressed and immaculately turned out,Alapont is here to talk business.
Technology
One of his first acts was to set up a 'relaunch plan' to convert this consummate under-performer into a major force in the global CV industry.
"Since my arrival we have been working in three important areas," he explains. "Product technology, quality and service. Why these three? I am absolutely convinced that the market share of Iveco does not correlate with the strength of our product in all countries today Therefore we are trying to come back to the market and show all our cards.
"Up to now we have attacked the commercial side in order to win sales, not the technological side. We now have the right products and I think we have the opportunity to use this technology, quality and service and convince the customer of our merits."
The relaunch involves a new structure. Iveco was previously organised around three vertical business divisions: light, medium and heavy. This allowed it to focus on the various market sectors but there was little cross-fertilisation of ideas and resources.
Alapont has simplified the structure to van and truck divisions and has opened channels to ensure that economies are made throughout the business, "My first action was to reverse the trend of the company underperforming financially, which we have managed to do." he says. -We performed better in the last quarter in 2003. But we have also managed to put in place a strategy to take advantage of the cross working on a number of functions.
Global strategy
-We have now established a new organisation for lveco creating three new positions: a vicepresident for global sales and marketing; the same for product and business strategy, covering all product definition; and finally global purchasing.This means that whenever we find opportunities to reduce cost throughout the globe we can introduce it throughout all sectors of the business.
"Those are extremely powerful sources for being cost-competitive and for cost reduction, and of course we will continue to work on manufacturing to ensure labour costs are minimised."
Alapont will inevitably be judged by results. Don't hold your breath for new models, however — the company has already invested millions in its product line-up. The current truck and engine range is well placed: the job Ala faces is moulding the compa address the needs of the m; and gain the trust and respc its customers.
Changing the culture of a pany requires a massive effor if Alapont is the man both hi: ics and fans say he is, we wor want to bet against hirn.The s couldn't be higher — failure could kill Iveco. But if he silo the global CV industry will se awakening of a sleeping gian Iveco's competitors have reason to keep a very close e: future developments. •