Italy: minister sees FCA as a success story image

According to Italian Economy Minister Pier Carlo Padoan, although the new Fiat Chrysler Automobiles group would move headquarters from the country, the restructuring should be seen as a success case.

Some Italian politicians have seen the advent of the new FCA group – the world’s seventh largest automaker – which would move its headquarters from Italy and the US to London and the Netherlands for tax purposes, as a classic case of offshoring operations. They criticize Fiat’s shift from its historic home base in Turin, which housed Fiat since its inception, 115 years ago.

“I think the Fiat story is not a question of offshoring but rather a magnificent case of industrial transformation,” said Padoan in an interview with Italian daily Il Foglio. “Our country should take steps so that staying in Italy becomes beneficial for the future of businessmen,” he added.

Sergio Marchionne, which came to Fiat in 2004, managed to engineer a big turnaround for the Italian company, which just an year before, in 2003, was posting a trading loss of nearly 1 billion euros ($1.4 billion). His plan soon bear fruits, and culminated with the 2009 partial acquisition of Chrysler Group LLC – as the two companies now finally merge this year into the new Fiat Chrysler Automobiles.

Via Automotive News Europe