26.11.2007 BERTONE SEEK PROTECTION FROM THEIR CREDITORS AS TALKS GO ON 

Today the 1,300 workers employed by the Carrozzeria Bertone division marched to the Grugliasco plant in Turin demanding to know more about the situation, and Italian news sources reported some tensions arising. Photo: La Reppublica.

DR3

DR Automobiles Groupe has been talking to Bertone about CKD kit assembly of two mid size Chinese SUVs, with production being around 12,000 units annually.

Carrozzeria Bertone's struggles to stay afloat and find new vehicle assembly business continue with the historic Italian firm today applying for bankruptcy protection. Known in Italy as Concordato Preventivo it is similar to Chapter 11 in the United States which has recently be sought by car industry firms' such as components giant Delphi. By entering into Concordato Preventivo Bertone will be able to restructure the Carrozzeria and chase new business while preventing creditors from collecting payments owed to them during this period.

The news was revealed in a statement issued today by Bertone and specifically concerns the Carrozzeria Bertone division. The design, engineering and glass divisions are unaffected by the move. Carrozzeria Bertone's production lines have been idle since a contract to upgrade 2,000 MINI models (to top John Cooper Works Grand Prix specification) ran out to a conclusion more than a year ago.

The Italian firm has the capacity to build 70,000 units annually. Recent attempts to drum up new business have included proposals to start up limited production of the failed British sportscar maker TVR at the Grugliaso plant, while strenuous efforts to persuade Fiat of the merits of a production version of its Suagnà concept car, a folding hardtop 'coupé-convertible' which is based on the Fiat Grande Punto's architecture.

Talks with other prospective new clients are on-going. “We are currently conducting confidential talks with Italian and international industrial and financial entities to secure Carrozzeria Bertone a future in vehicle manufacturing,” Bertone's hands-on CEO Lili Bertone said in a release issued today. Bertone isn't the only traditional Italian Carrozzeria to be struggling at the moment, Pininfarina has overstretched itself recently over a string of contracts with major car manufacturers and it is currently seeking restructuring options.

The issue of finding new work is now particularly pressing for Bertone as a worker redundancy payment scheme paid for by the Italian government runs out at the end of December, leaving little time for new assembly business to be found. Today the 1,300 workers employed by the Carrozzeria Bertone division marched to the Grugliasco plant in Turin demanding to know more about the situation, and Italian news sources reported some tensions arising.

DR Automobiles Groupe, an ambitious Italian automotive firm which imports several SUVs from two Chinese car manufacturers, Zhejiang Gonow Automobile and Jonway Automobile, seems to be the best prospect to get the moribund production lines at Grugliasco up and running again. DR Automobiles Groupe has been talking to Bertone about CKD kit assembly of two mid size Chinese SUVs. Automobile News Europe states today that a pick-up has also been included in the on-going talks, with combined production being around 12,000 units annually. However Bertone requires 30,000 unit annual production just to break even. “The request for Concordato Preventivo is not interfering with the talks we are currently having with Carrozzeria Bertone,” DR Motor CEO Luca Falasca told Automotive News Europe today.
 

© 2007 Interfuture Media/Italiaspeed