Fiat Chrysler Automobiles has denied a Bloomberg report that it was mulling shifting the fiscal headquarters of its Ferrari unit outside Italy. Citing sources privy with matter, Bloomberg reported that such a move would allow Ferrari to save on corporate taxes. One newspaper in Milan, Il Giornale, printed a front page headline saying, "Ferrari Fleeing to London."
Fiat Chrysler has issued a statement to belie the reports, saying that the “rumors have no grounds." Fiat Chrysler said that it has no plans to transfer the tax residence of Ferrari SpA outside Italy. It added has no project to “delocalize” its Italian operations.
The possibility of a transfer has led to some concerns in Italy, which is currently struggling to emerge from an economic recession. It also prompted debate on the risk of losing another of Italy’s world-famous brands.
Italian carmaker Fiat and truck and tractor maker CNH Industrial have already shifted their fiscal residences out of Italy to the United Kingdom. Worried that Ferrari would follow the footsteps of its parent, politicians and union leaders have called for Italian Prime Minister Matteo Renzi to intervene to out a stop to the trend.
Carla Ruocco, a lawmaker with the Five Star Movement and deputy chairman of the Lower House Finance Committee, remarked that corporate taxes in Italy are still too high while investment plans to modernize the country are still non-existent.
She added that with this business environment, it was not surprising that “more and more companies and investors are fleeing the country." Fiat Chrysler chief executive Sergio Marchionne disclosed in October a plan to for a Ferrari spinoff, sell a 10-percent stake via a public offering and distribute the rest of FCA's holdings to its shareholders.