Chrysler Group to remain a US legal entity after Fiat merger

Article by Andrew Christian, on April 2, 2014

Chrysler Group LLC will still be United States legal entity even after its merger with Fiat SpA is completed later this year, Sergio Marchionne, chief executive of both carmakers, said. He said that Chrysler’s company name and legal form may change. Marchionne remarked that the timing of Fiat SpA’s extraordinary shareholders meeting to approve the new company name -- Fiat Chrysler Automobiles -- and the primary stock listing in New York remains undecided until they could get a clearing from the US Securities and Exchange Commission.

Marchionne said he hopes to get approval from Fiat shareholder by the summer and have FCA operative and listed in New York by the end of 2014. Fiat will be incorporated into FCA NV under a recent European law pertaining to cross-border mergers within the European Union. However, the rules do not cover Chrysler since it is a non-EU entity, which means Chrysler Group LLC will remain a US legal entity.

FCA NV will be a legal entity incorporated in the Netherlands, having a tax residency in the United Kingdom. Marchionne remarked that FCA shareholders’ meetings will be held in the Netherlands, while board of directors meetings will be held “preferably but not compulsorily” in the UK.

Marchionne has divulged that FCA will have the capability to increase annual deliveries by up to 55 percent to 7 million vehicles. “We are equipped to go on the attack against the giants in our industry,” he said during the annual meeting. Marchionne is set to disclose his strategic plan for the new company in May. [source: automotive news - sub. required]

Topics: chrysler, fiat

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