Manufacturing News

Fiat becomes Fiat Chrysler Automobiles

Italian car maker Fiat will now be known as ‘Fiat Chrysler Automobiles’, following its purchase of US car maker Chrysler.

AP reports that the company’s nominal headquarters will now be in the UK, mainly for tax purposes and it will list its shares in both New York and Milan by October 1.

There has been political interest in the location of the merged company’s headquarters, both in the US and Italy.

In the US, the interest stems from the fact that the government saved Chrysler from bankruptcy in 2009. And in Italy, given that Fiat is the largest private employer, there is concern that jobs will be lost.

However, according to Corporate executives, including Sergio Marchionne, CEO of both companies, the real headquarters is on an plane. The leadership team spends a lot of time travelling to meetings in various locations.

Fiat Chrysler Automobiles will maintain research, engineering and financial operations in Turin, Italy, and at Chrysler's office complex in Michigan in the US.

Marchionne said the new logo links the two companies. Chrysler and Fiat have already jointly designed three vehicles, the Dodge Dart compact, Jeep Cherokee SUV and the upcoming Chrysler 200 midsize car.

As Reuters reports, the new company has a difficult task ahead of itself because Fiat has cut its 2014 profit forecast after a slump in Latin American earnings.

The company is aiming to be a global player and to target the premium car market.

"In order to establish a true peer to the major global automotive groups, in both scale and capital market appeal, the Board has decided to establish Fiat Chrysler Automobiles N.V., organized in the Netherlands, as the parent company of the Group," the group said in a statement.

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