According to the latest media reports, it appears that we will not see a merger between Fiat and Chrysler before 2014. These words cam from Sergio Marchionne, CEO of Fiat and Chrysler, who also told reporters that he doesn’t doesn't foresee “any necessity” of a merger. Marchionne also said that Fiat needs to resolve its financial stability.
Fiat will keep its headquarters in Italy in case of a merger with Chrysler only if the investment conditions remain.
For those who don’t know, Fiat owns 25 percent of Chrysler, but the Italian manufacturer aims to take a majority stake in the U.S. automaker. Still, the American manufacturer needs to refinance its government loans. Chrysler needs to repay a total of $7.46 billion to the U.S. and Canadian governments.
“If the heart of Fiat will remain in Italy, we will have our head in several places: Turin for Europe, Detroit for U.S., one in Brazil and, in the future, one in Asia,” said the CEO. Marchionne also added that Fiat is still losing money in Italy. [via autonews - sub. required]