Merged Fiat-Chrysler may have primary listing in New York

Article by Anita Panait, on January 7, 2014

The plan of Fiat-Chrysler chief executive Sergio Marchionne to merge the two carmakers might entail moving the Italian carmaker’s primary listing to New York as early as 2015 once the merger is completed, two sources privy with the company told Reuters. Chrysler accounted for over half of the Fiat Group’s revenues in the first half, allowing the Italian carmaker to post a EUR435 million profit instead of a EUR501 million ($690 million) loss, according to 2013 estimates from IHS Automotive.

Moving the listing from Italy to the United States would help Marchionne distance himself from the struggles in Europe, where thousands of Fiat's Italian employees are on state-backed temporary lay-off schemes. The move would also highlight Fiat’s growth in the US as well as help convince a larger number of investors that the merged company can compete against larger rivals General Motors and Ford Motor Co.

"With a US listing, the whole investment story and the way in which people think about this company may change," International Strategy and Investment analyst George Galliers told Reuters. He noted that people currently think of Fiat as a weak European player with a good exposure to South America as well as to North America via Chrysler.

He added that once Fiat is listed in the US, people will think of the carmaker in the same “context as they do Ford and GM." Luciano Gallino, a sociologist who specializes in labor market changes, was quoted by ANSA news agency as saying that while Turin, Italy has been Fiat’s headquarters for 115 years, "the brain and muscles” are in the US. [source: Reuters]

Topics: fiat, chrysler

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries