The recently formed Fiat Chrysler Automobiles is a true global company, with factories all over the world and headquarters in… three different countries.
In a move deemed highly sensitive on the political size, Fiat Chrysler Automobiles will have its new official headquarters outside Fiat SpA’s home country, Italy, with residency in London, UK, for tax purposes.
Now, according to sources that have knowledge of the plans made at the executive level, but declined to be named because they are not allowed to officially discuss sensitive decisions, the new London headquarters will only be a very small one – with around 50 people working there – and almost all with finance background.
The new official office is set to open before the year’s end, with Fiat Chrysler CEO Sergio Marchionne and Fiat Group Chairman John Elkann both having an office there, while the chief financial officer, Richard Palmer, is yet to be known if he would also get a “residence” there.
While moving the tax residence to the UK allows the company to take advantage of a smaller corporate tax – 20% in 2015, as opposed to 31.4% in Italy and 35% in the US – the move is sensitive on both ends of the Atlantic, but if the very small office pans out, tensions could be appeased.
Via Automotive News Europe