Fiat Chrysler belies report on possible Ferrari tax residence transfer

Article by Christian A., on December 15, 2014

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.

If you liked the article, share on:

Topics: fiat, chrysler, ferrari

Comments

Recommended

It has been more than four years since BMW announced the imminent arrival of its largest sports utility vehicle ever. Now, the German premium carmaker is finally introducing its much-anticipated...
by - October 17, 2018
Ford is giving potential Fiesta customers more reasons to purchase its world-renowned subcompact. Two of these are the introductions of new sporty model based from the ST-Line trim of the...
by - October 17, 2018
Volvo’s performance brand, Polestar, is all-set to redefine the way people purchase their new vehicles. But even before it rolls out it this innovative brand and retail concept, Polestar is...
by - October 17, 2018
Nobody would dare take a Bugatti Chiron to the off-road. After all, the power, dynamics and capabilities of the Chiron are designed to challenge the road and even the track,...
by - October 16, 2018
The new Porsche Taycan is considered as revolutionary at the German sports car maker as the upcoming model is its first all-electric vehicle. Nonetheless, the new Taycan four-door EV will...
by - October 16, 2018