Fiat Chrysler Automobiles is nearing its historic listing on the New York Stock Exchange and the chief executive of the newly merged group is confident the shares would mostly trade in the US.
Sergio Marchionne has a clear goal to achieve its plans for the company – at least 50% of the shares trading on Wall Street, rather than the traditional home for Italy’s Fiat SpA, Milan. The new automaker, formed after Fiat fully acquired its US subsidiary Chrysler Group LLC, would have the primary listing in New York and the secondary in Italy.
“If we do more volumes in New York than we do in Milan, that’s a good benchmark,” said Marchionne. He also said that in Italy the trading volumes are usually in the range of 10 million share transactions. “If that number were to go 6 million in the U.S. and 4 million in Europe I’d be happy,” he said n an interview with Reuters.
The share listing follows an ill-fated DaimlerChrysler tie-up in 1998 that saw cultures, executives and much more clash, resulting in a swift, decade later collapse. Fiat and Chrysler have somehow avoided the destructive stance now, though.
With the listing scheduled on October 13, Fiat and Chrysler are completing a story that started back in 2009 when the latter was fresh out of a government rescue and bankrupt. Over the years, Fiat SpA managed to secure 100% of its US subsidiary and form Fiat Chrysler Automobiles, now the world’s seventh-largest automaker.