According to anonymous sources Fiat plans to move its headquarters to the US once the merger with Chrysler would be complete.
Currently, CEO Sergio Marchionne is evaluating the possibility of transferring from Turin, where Fiat was founded back in 1899, to the States as the company’s profit and revenue center moves to North America. Last year North America accounted for 75% of Fiat’s operating profit. No decision has been made yet on the headquarters, but last month Marchionne said he preferred a primary listing in New York for the new group which will be created.
Since 2009 Fiat began to reduce its dependence on Europe, where it lost more than 700 million euro in 2012. Last year Europe accounted for 24% of the automaker’s revenue, compared with 2004 when the continent accounted for more than 90%.
“Europe is becoming a less and less relevant fact in the scheme of things,” Marchionne told analysts last month. “It’s a reflection of the ability of this house to shift its interest and to shift its resources to markets that are much more rewarding in terms of investment and return.”
Fiat will have to acquire the rest of Chrysler’s stake before considering relocating its headquarters. The other 41.5% in the US automaker is owned by VEBA, the United Auto Workers retiree health care fund, with which Fiat is disputing in court the price for the shares.
Source: The Detroit News