Fiat, after announcing at the eve of the new year it bought the remaining equity in Chrysler, eventually decided the official marriage had to be celebrated in the Netherlands, were the merged company renamed Fiat Chrysler Automobiles (FCA in short) will be registered.
The announcement on January 29, 2013, that the once-upon-a-time Turin based carmaker will have its tax domicile in Britain and the stock will be listed in Wall Street raised some eyebrows in Italy, even if the chairman John Elkann reiterated that the new group would not move its 115-year-old headquarters out of Italy. “The merged company will have more than one headquarters […] with Turin at the center of a huge market that covers Europe, Middle East and Africa,” Elkann told Fiat owned-Turin based newspaper La Stampa.
He also pointed out that that Fiat would not pay less tax as a consequence of moving the tax domicile to London, a move he said was linked to the more favorable rules for American investors, which FCA hopes to attract. Financial observers, who one month earlier hailed the Chrysler deal as a masterpiece of Fiat CEO Sergio Marchionne, noted that markets have welcomed the rebranding and move announcement with a drop in the share price. Some fear that the merged group would need additional capital resources to carry out its investment programs. Marchionne denies plans for a right issue and the markets may expect he can deliver some more creative options, given his reputation of financial rainman.