Fiat May Move Headquarters to US After Chrysler Purchase

FiatFiatItaly, 1899 > present159 models
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is considering moving its group headquarters to the United States and listing its shares there following its purchase of ChryslerChryslerUnited States of America, 1925 > present70 models
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. The move would likely come in 2015 after Fiat officially completes its merger with Chrysler and organizes the new company’s structure.

Not only would it allow Fiat to take advantage of more favorable US taxes, but Chrysler’s profits caused Fiat to go from a loss to a profit. By itself, Fiat reported a €501 million loss, but figuring it Chrysler’s profits, Fiat had a €435 million profit.

If it does move its headquarters, Fiat could face some trouble in Italy where the national government has provided incentives to increase employment at Fiat’s Italian factories. Italian labor unions also worry that Fiat will move production to Chrysler’s factories in the US, Mexico and Canada. Currently, Fiat’s Italian factories are running far under capacity and run just a few days per month.

Fiat-Chrysler CEO Sergio Marchionne disputes that he plans to close Italian factories. While he has made no statement about moving the headquarters, he says that he plans to use Italian factories to build JeepJeepUnited States of America, 1941 > present33 models
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and Alfa RomeoAlfa RomeoItaly, 1910 > present108 models
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vehicles that will be exported worldwide.

Source: Automotive News Europe