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

Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018
Can a Dacia Duster be compared with a Ford Mustang? It would be difficult to do so as these vehicles compete in different categories and segments, have different price points...
by - November 20, 2018