[BCSA BUSINESS TEAM 24/25 – Scriptwriter: Sarthak Agarwal]
Introduction
Alfredo Altavilla is no stranger to challenges. With over 30 years in the automotive industry, including various pivotal roles at Fiat Chrysler and now Special Advisor at BYD for Euopean Market, he has navigated some of the industry’s most defining moments. From helping Chrysler emerge from the brink of collapse during the 2009 financial crisis to spearheading BYD’s expansion in Europe, his journey is one of resilience, strategic vision, and bold leadership. In addition to his automotive roles, he has also worked as a senior advisor at CBC, Europe’s largest private equity fund, and served as the executive chairman of ITA Airways, overseeing the restructuring of Italy’s national airline.
In our conversation with him, Altavilla shared his insights on BYD’s aggressive European expansion, the lessons learned from his experience with Fiat Chrysler, his strategic role in private equity, and his leadership in the airline industry, offering valuable lessons in resilience and transformation.
BYD’s Bold Expansion: A Once-in-a-Lifetime Challenge
For Altavilla, joining BYD in Europe was an opportunity unlike any other. “It doesn’t happen very often that a company with over $100 billion in turnover is simultaneously a giant in its home market and a startup in another region,” he explains.
When he joined BYD in Europe, the company was selling only 150 cars per month in Italy. Just five months later, that number had surged to 2,000. This rapid expansion is part of BYD’s broader strategy, with plans to establish 800 dealerships by 2025 and launch manufacturing operations in Hungary and Turkey, capable of producing nearly 500,000 cars per year.
However, Altavilla acknowledges that BYD’s expansion in Europe demands more than just exporting vehicles from China. Integrating local suppliers is a critical aspect of this strategy. Chairman Wang Chuanfu and Executive Vice President Stella Li have played a decisive role in shaping BYD’s European vision, advocating for a localized approach that strengthens the company’s regional identity. By leveraging Italy’s well-established and highly competitive automotive supplier base, BYD is not only reinforcing its European presence but also proactively addressing tariff-related challenges. This calculated approach positions the company for long-term, sustainable growth across the continent.
“This market is a jungle. It’s always been, by the way. And we want to fight to get our share of this market, an important share of this market going forward. We are not doing all this to be a 1% player in the market. That’s not the reason why we’re here today.”
Lessons from the GM-Chrysler Crisis: Leadership Under Pressure
Altavilla is no stranger to high-stakes situations. During the 2009 financial crisis, he played a crucial role in Fiat Chrysler’s negotiations with the Obama administration to save Chrysler from bankruptcy.
While General Motors received a $50 billion bailout due to its “too big to fail” status, Chrysler faced a much tougher path. Fiat Chrysler secured a $7.5 billion loan at steep interest rates to help pull Chrysler out of Chapter 11. The restructuring process was grueling, but it ultimately revived Chrysler as a competitive force in the industry.
One of the key takeaways from this experience was the importance of bold decision-making and leadership. Altavilla had to fire ineffective managers, identify promising talent within Chrysler, and give them the opportunity to lead. This lesson remains relevant as BYD expands in Europe, requiring a combination of experienced leadership and fresh, ambitious talent to drive success.
“I fired more people in the first 60 days as board member of Chrysler than I did in my life, but we identified a lot of number two and number threes that were sitting in the rankings of the company but were driven by a tremendous ambition to make their company successful.”
Lessons Learned in China
Altavilla’s experience in China began in 1995 when he was appointed head of Fiat China, during a time when the Chinese car market was just 500,000 vehicles per year. Over his four years in Beijing, he was tasked with setting up a dealer network in China and in Hong Kong, find a partner for a joint venture, and set up a plant in Nanjing. This period proved to be a formative experience for Altavilla as he navigated the complexities of a completely different culture and business environment, all while engaging deeply with the Chinese government, which played a central role in the automotive sector at the time.
Through this experience, Altavilla learned the importance of establishing direct and transparent relationships with the local government. He recognized that, in China, it was impossible to run a business without strong government involvement, particularly from the State Planning Commission. While the cultural differences were challenging for a European like him, Altavilla found that these lessons were invaluable, ultimately contributing to his ability to set up and unwind several joint ventures in China throughout his career.
“At the end it paid back because in my life I have set up nine joint ventures in China. I also had to unwind five joint ventures so I got some experience in doing deals”
The Rise of Chinese EVs: A Global Shift in Automotive Power
China’s automotive market has grown at an unprecedented rate, from 500,000 cars per year in 1995 to 30 million today. BYD, with 103,000 engineers, has emerged as a leader in electric vehicle (EV) technology, surpassing even Toyota’s 52,000 engineers putting BYD at 1st in terms of R&D staff globally. Altavilla emphasizes that BYD sees itself as a technology company first, rather than just a car manufacturer.
However, entering the European market requires significant adaptation. “Chinese highways have a speed limit of 80-90 km/h, while European consumers expect cars that perform well at 200 km/h,” he notes. His role includes bridging the gap between Chinese engineering and European driving preferences, ensuring that BYD’s vehicles meet regional expectations.
Altavilla goes on to describe BYD’s management as “mindful, experienced, and aggressive.” He highlights that while technology is crucial, effective management is essential to fully exploit the technology within the company. BYD’s management is key to leveraging its vast resources, to ensure the company’s success. Without strong, strategic management, even a company with such immense technological capabilities would not be able to achieve its goals.
Further emphasizing on that Altavilla goes on to say that the automotive business is straightforward, with simple rules for running a car company. The global automotive market in Europe consists of 90 to 93 million cars sold annually, and this number is expected to remain stable in the next five years. BYD, on the other hand, sold 1.2 million cars in 2022, 2.6 million in 2023, and is projected to sell 4.2 million in 2024. He stressed how this is not possible without an aggressive strategy.
“If BYD keeps on growing like this and the overall market stays
the same five years from now this means that the minimum one or
two European or American OEMs will be killed in this process. In order to do this, you cannot be aggressive (its not about choice), you need to have an aggressive strategy”
Leadership & Teamwork: The Cornerstones of Success
Altavilla’s leadership philosophy is centered on three principles:
- Challenge the status quo – He encourages team members to question existing frameworks and propose new solutions.
- Hire ambitious and fast learners and build the best possible team – He values individuals who are eager to grow and make tough decisions when necessary as success is a direct result of assembling a group that is both skilled and aligned with the company’s vision.
At BYD, this means balancing the strengths of Chinese engineering with European market expertise. The ability to adapt quickly and work collaboratively across cultural differences is crucial to the company’s success in Europe.
“I want people around me that come to my office and tell me,
You know what? Tonight I thought that there could be a different way to accomplish what we need to accomplish. That is the kind of attitude I need. I hate people who keep on repeating always the same framework.”
The Future of BYD in Europe: Competing with Legacy Automakers
BYD’s aggressive strategy is positioning it as a formidable competitor in the European market. Unlike other Chinese brands that compete primarily on price, BYD aims to establish itself as a high-tech, premium brand. With additional brands like Denza (premium) and Yangwang (luxury) set to launch in Europe, the company is poised for significant market penetration.
Altavilla sees Global automakers as vulnerable, citing their slow adaptation to the EV market. “I would say that with the exception of Toyota and Hyundai, any other OEM in the world today is not just weak, but is scared to death about the future could look like five years from now”. BYD, with its financial strength and rapid decision-making, is moving at a pace that traditional automakers struggle to match.
“The reason why we will be getting a significant market share in Europe as we’re getting in Latin America is because we can move faster than anybody else. Because others are very much concerned about whether they’re gonna be alive I guess from now”
Conclusion
From rescuing Chrysler in the U.S. to helping BYD disrupt Europe, Altavilla’s career has been defined by bold leadership, strategic decision-making, and an unwavering pursuit of growth. His advice to young professionals? Never settle. Get out of your comfort zone and and always seek the next big challenge.
As BYD continues its rapid expansion, one thing is clear: the future of the European automotive industry is being reshaped, and Alfredo Altavilla is once again at the center of the transformation.
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