Fiat might leave its heritage further behind as anonymous sources say it plans to choose New York as its primary exchange for the company’s stock.
Sources said that CEO Sergio Marchionne is currently considering switching the company from Milan to the US for almost all its revenue and profit. Marchionne, the CEO of both Fiat and Chrysler, plan to merge the two automakers to create a global automaking group to rival VW and GM. Fiat might keep Milan to be its secondary listing. If Fiat really goes ahead with this plan, it would be a blow for the debt-ridden Italy and will attract the political criticism.
“Italy and Turin should understand that the old Fiat, as we knew it, doesn’t exist anymore,” said Giuseppe Berta, a Fiat historian and business professor at Milan’s Bocconi University. “The carmaker now has the U.S. as its biggest market, so I would be surprised if Marchionne doesn’t choose the New York Stock Exchange.”
Last year Fiat lost more than 700 million euro in Europe, but generated 75% of last year’s operating profit in North America. Erich Hauser, an analyst for Credit Suisse in London, said that it makes sense that Fiat will choose to list the Fiat-Chrysler group in the US, where refinancing costs are lower.