Chief Executive Officer Sergio Marchionne clarified – in a move long dreaded in Italy, that newly merged Fiat Chrysler Automobiles (FCA) headquarters would be moved to London, UK.
For the newly established auto group, already navigating shallow waters with the five-year business plan and the recent investor concern over the execution and needed funding, the headquarters shift is also a very sensitive political matter, as the ruling group – Fiat SpA, has had its home base in its home country, Italy for 115 years. Currently, Fiat’s hq is located in Turin, Italy, while Chrysler is located in Auburn Hills, just outside of Detroit.
“Headquarters will be in London,” Marchionne said to journalists during a press conference at Chrysler’s headquarters. “It’s clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn’t mean that I’m giving up my operational responsibilities of the U.S. We will be multi-faceted … we will do stuff everywhere.”
Back in January, when the CEO sealed a $4.35 billion deal that lent it full control of the US unit Chrysler group LLC, the company announced that it would have the new group’s registration in the Netherlands, the tax domicile in the UK, while the primary share listing would be in New York and a secondary in Milan.