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Old 1st August 2014, 09:35   #1
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Default Fiat Headquarters moving from Italy to UK!

Fiat is moving its headquarters out of Italy. Fiat-Chrysler Automobiles NV will be based in the UK, incorporated under Dutch law and listed on the New York Stock Exchange. From Businessweek:
Quote:
Fiat SpA (F), Italy’s largest manufacturer and a symbol of the country’s struggle to adapt to globalization, is leaving home after 115 years.



The controlling Agnelli family and other investors will meet today in Turin to seal the end of Fiat as an Italian company after it merges with Chrysler. Created by Italian-Canadian Chief Executive Officer Sergio Marchionne, Fiat Chrysler Automobiles NV will be incorporated under Dutch law, based in the U.K. and listed on the New York Stock Exchange.
...
There’s little option for Fiat as a stand-alone company. North American operations, which were non-existent before Fiat gained control of Chrysler about five years ago, accounted for 62 percent of the group’s second-quarter operating profit. The manufacturer’s once-core European operations lost 6 million euros, as the saturated market gradually recovers from a two-decade low. Without its U.S. division, Fiat would have been unprofitable in 2012 and 2013.
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Old 1st August 2014, 10:38   #2
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Default re: Fiat Headquarters moving from Italy to UK!

I think that's short-sighted unless there's a big tax saving somewhere - how does moving locations from Italy to UK help anything when its the NA division that's bringing in the moolah?

By that logic, TML should have moved out of India as well given its recent lacklustre sales and stellar performance by JLR!

Moving out of UK alters Fiat's identity irreversibly. Not cool IMHO.
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Old 1st August 2014, 11:51   #3
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Default re: Fiat Headquarters moving from Italy to UK!

This move is for tax benefits. A really big 10% tax saving

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Corporation tax in Italy is 31.4%, compared with 23% this year in Britain, falling to 21% in 2014. The chancellor, George Osborne, boasted in March that the UK would have "the lowest business tax of any major economy in the world" when he announced that corporation tax would be cut to 20% in 2015, down from 30% in 2006.
Source : http://www.theguardian.com/business/2013/may/21/fiat-industrial-seeks-uk-tax-move
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Old 1st August 2014, 23:41   #4
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Default Re: Fiat Headquarters moving from Italy to UK!

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Originally Posted by phamilyman View Post
Moving out of UK alters Fiat's identity irreversibly. Not cool IMHO.
May be that is what Fiat is looking for; A new identity. With Chrysler and its R&D under its belt, it is not the old Fiat any more. A slightly modified logo to go with the new headquarters will do good for Fiat, a fresh start for the combined entity.
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