Fiat Chrysler invalidates reports about Ferrari moving tax base outside Italy image

FCA has announced it strongly denies the media reports that claim the automaker was mulling the move of Ferrari’s tax residence outside Italy, in the same manner it did with FCA NV when Fiat SpA and Chrysler Group LLC merged.

Fiat Chrysler replied promptly in a statement – saying, “these rumors have no grounds, as there is no intention to move the tax residence of Ferrari SpA outside Italy, nor is there any project to delocalize its Italian operations.” The reported move would have been made in order to secure a tax advantage in light of the decision to spin off the carmaker from the parent company. Back in October FCA CEO Sergio Marchionne announced that the iconic Italian luxury sports car manufacturer would be sinned off, with 10% of its shares offered to investors through an initial public offering and the rest being divided among existing FCA stakeholders.

The recently merged Fiat Chrysler Automobiles, together with sister company CNH Industrial (Fiat Industrial merged with CNH to make a US-listed producer of trucks and tractors) have both (separately) moved their headquarters and tax domicile to the United Kingdom and have their legal base in the Netherlands. These represented politically sensitive moves away from Fiat’s home country – Italy.

Via Reuters