Massive new Fiat deal for TNT
TNT Logistics has announced a major new deal with Fiat which will see it control the automotive manufacturer’s entire inbound distribution for all its plants in Italy through a new joint venture. TNT will take a 51% holding in the jv with an Italian logistics company, Arvil, which is owned by the Arcese and Bonzano group. The joint venture will have revenues of €250m and employ 3,500 staff. With a single company now in charge of the inbound logistics, it will be possible to restructure Fiat’s distribution requirements and TNT intends to take a major role in this process.
TNT already undertakes a substantial level of business for Fiat, managing its inbound logistics for plants located in Northern Italy (Mirafiori, Rivalta, Verrone). Arvil manages the logistics for three further plants and a third enterprise, Logint, manages three more. Recently TNT and Arvil each acquired 50% of Logint, and their stakes will be contributed to the new joint venture.
Although the new deal will increase TNT’s dominance of the Italian logistics industry the strategy of increasing its exposure to Fiat, which already accounts for 12% of its global logistics sales, is not without risk. Fiat has had many well publicized problems and sales of its cars have plunged. In 2002 Fiat Auto reported a €1.34bn loss with sales declining by 9.4%.
