{"id":65311,"date":"2023-10-26T14:32:09","date_gmt":"2023-10-26T14:32:09","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2023\/10\/26\/bytes-bullets-and-broader-horizons-new-leonardo-boss-teases-strategy\/"},"modified":"2026-08-08T00:57:41","modified_gmt":"2026-08-08T00:57:41","slug":"bytes-bullets-and-broader-horizons-new-leonardo-boss-teases-strategy","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2023\/10\/26\/bytes-bullets-and-broader-horizons-new-leonardo-boss-teases-strategy\/","title":{"rendered":"Bytes, bullets and broader horizons: New Leonardo boss teases strategy"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ROME \u2014 Leonardo is eyeing \u201cgiant\u201d joint ventures in Europe, starting with electronics tie-ups, and is seeking to boost its space alliance with Thales while making \u201cpeace\u201d with shipyard Fincantieri, the <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2023\/04\/12\/new-leonardo-ceo-pick-cingolani-may-signal-cybersecurity-ai-focus\/#:~:text=ROME%20%E2%80%94%20The%20Italian%20government%20nominated,over%20from%20incumbent%20Alessandro%20Profumo.\">Italian firm\u2019s CEO<\/a> has said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a wide-ranging speech to an Italian parliamentary defense committee, Roberto Cingolani outlined his strategy for the Italian flagship defense firm, five months after taking over the helm from previous CEO Alessandro Profumo.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 61-year-old Italian kicked off his speech by stressing how he has worked to increase Leonardo\u2019s capabilities in cybersecurity and high-powered computing, claiming the focus would reinforce, rather than distract, from the firm\u2019s defense work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s not just bullets, but bytes,\u201d he said, adding that \u201cwe will defend our core business\u201d and emphasizing that \u201ctraditional defense remains a key pillar.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, he explained, \u201cwe must broaden our horizons.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A former chief technology and innovation officer at Leonardo, Cingolani pushed cyber and artificial intelligence programs at the firm before he left in 2021 to become a so-called green transition minister with the Italian government, only to return to Leonardo as CEO in May.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cEverything has to be cyber safe by design,\u201d he told the committee during his Oct. 25 presentation, adding that the firm is on a \u201cforced march\u201d toward digitalization, with \u201cdigital twins\u201d now being created for all products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cingolani said Leonardo\u2019s competitors are now not only defense companies, but the likes of Google, Microsoft, Amazon and IBM.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere are companies which didn\u2019t exist. Ten years ago Elon Musk was running PayPal and then ran Tesla. Now we have these kind of competitors,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Musk\u2019s SpaceX is a defense contractor and satellite communications company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cingolani is overseeing the cyber push, while Leonardo\u2019s co-general manager, Lorenzo Mariani, focuses on the firm\u2019s more traditional defense work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Turning to alliances, Cingolani said Leonardo wants to play a key role in European industry consolidation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are working on some alliances that should create European hubs in fundamental defense sectors. That means creating entities that are not just Italian, just German or just French, and can compete on level terms with U.S. and China colossuses,\u201d he said. \u201cWe have due diligence and talks with international banks underway to help us understand what to sell and what to buy, and we are mulling some joint venture on a giant scale.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cingolani said a likely area for consolidation is electronics.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHowever big we \u2014 or the French, or the Germans \u2014 are in electronics, none of us are big enough to compete with the American or Chinese, and that is why we are mulling aggregation,\u201d he explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cingolani added he is calling for a halt to tension that surfaced in recent years between Leonardo and fellow Italian state-controlled firm <a href=\"https:\/\/www.defensenews.com\/industry\/2022\/12\/27\/fincantieri-ceo-talks-us-frigates-vision-for-europes-naval-sector\/\">Fincantieri<\/a>. Leonardo provides radar, electronics and guns for Fincantieri vessels, but the two firms tussled as Fincantieri expanded into wider defense activities under former CEO Giuseppe Bono.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cPeace has broken out,\u201d Cingolani said. He also told the committee that he had agreed with current Fincantieri CEO Pierroberto Folgiero that \u201cwe will make things that fly and they will make things that float. It\u2019s not that complicated, with electronics acting as the glue.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Turning to Leonardo\u2019s space activities, Cingolani quoted reports predicting the space business would be worth $1 trillion by 2030, claiming that \u201cthe market is crazy,\u201d with \u201chuge margins\u201d for growth in satellites.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CEO also said he wants to boost the activities of Leonardo\u2019s space alliance with French firm <a href=\"https:\/\/www.defensenews.com\/industry\/techwatch\/2023\/09\/13\/french-british-underwater-drone-proves-de-mining-ability-says-thales\/\">Thales<\/a> \u2014 a tie-up which had become \u201ca bit sleepy\u201d in recent years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He added he had found a willing partner in Thales CEO Patrice Caine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf we don\u2019t work together to compete with SpaceX, not to mention the Indian and Chinese governments, we risk disappearing,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Roberto Cingolani told lawmakers he is in favor of creating European defense-electronics joint ventures that can take on large U.S. and Chinese 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