The Italian government will try to convince Sergio Marchionne not to move Fiat and Fiat Industrial from the country.

Industry Minister Flavio Zanonato and CEO Sergio Marchionne will meet next week and talks about Italy’s role for Fiat and Fiat Industrial. Fiat Industrial plans to shift its fiscal headquarters to the UK, after the merger with CNH Global, while Fiat plans to move its corporate headquarters to the U.S. after the merger with Chrysler.

Labor unions as well as government officials are concerned about these moves, which will have a dramatic effect on the jobs and the country’s future, as unemployment in Italy has already reached a 20-year high. Fiat Industrial plans to move its fiscal headquarters to the UK as it plans to cut corporate taxes, while Fiat aims at moving its headquarters to the US as that market is the company’s main source of profit and revenue.

“It wouldn’t be good news,” Carlo Dell’Aringa, a labor ministry undersecretary, said in a televised interview with Sky Tg24 yesterday. “Even if moving the headquarters to the U.S. doesn’t mean abandoning plants and production, it would be a step that will harm the future of the company in Italy.”

Source: Bloomberg


Please enter your comment!
Please enter your name here