Fiat Chrysler Automobiles chief executive Sergio Marchionne has disclosed that the merged carmaker will be based in London, United Kingdom. This means that Fiat would essentially move away from its Turin, Italy headquarters, its home for the past 115 years. Chrysler is currently based in Auburn Hills, Michigan.
Marchionne said that Fiat Chrysler’s group executive functions, board, his office, and some of his functions will be based in London. He, however, said that this doesn't mean he will give up operational responsibilities of the United States.
“We will be multi-faceted,” he quipped. Fiat completed a $4.35-billion transaction in January taking full control of Chrysler and pave way for the establishment of the seventh-largest auto group in world. At the time, Fiat Chrysler was believed to have its primary listing in New York, with a secondary listing in Milan.
It was also believed to be registered in the Netherlands and have its tax domicile in the UK. Both politicians and unions in Italy have expressed worries on possibility of more job losses a result of the headquarters transfer, although Marchionne has been saying that the merger would not affect impact on jobs in Italy or elsewhere.
Independent auto analyst John Wolkonowicz told Reuters that Fiat Chrysler choosing London as a headquarters makes sense for several reasons like London being a financial capital and being centrally located among Fiat Chrysler’s faraway businesses.
He added that London made the company avoid the burden of choosing either Turin, or Michigan, since the UK capital is a neutral ground.