Merged Fiat-Chrysler HQ will be in LondonFri, 09 May 2014 11:28:00 EST
You won't be seeing Sergio Marchionne in his famous sweaters running day-to-day operations of Fiat Chrysler Automobiles from Michigan. Although, he won't be doing it from Italy, either. The FCA CEO recently announced that the company's corporate headquarters would be located in London.
"Headquarters will be in London. It's clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn't mean that I'm giving up my operational responsibilities of the US," said Marchionne to Automotive News at a press conference.
When the creation of FCA was announced, the company said its tax domicile would be in the United Kingdom. But it gave no specific location at that time. The business is still keeping most of the details under wraps.
Chrysler spokesperson Gualberto Ranieri did confirm to Autoblog that the move to London will happen "later this year." FCA board meetings will be held in London, as will some corporate functionals. "But that will not mean that Mr. Marchionne will give up his operational duties in the US, including his office in Auburn Hills," Ranieri said.
Industry analysts speaking to AN say that the London location makes sense from a strategic standpoint. It doesn't show any bias between Chrysler in Auburn Hills or Fiat in Turin.
Marchionne is also fighting against investors' skepticism about FCA's recently revealed five-year plan. After the stock fell 12 percent, he and chairman John Elkann bought 130,000 and 133,000 shares respectively of Fiat stock to show their support, according to AN.
By Chris Bruce
See also: Share price falls on skepticism of Chrysler-Fiat five-year plan, Share price falls on skepticism of Chrysler-Fiat five-year plan, Marchionne: Midsize pickup still not in the cards; Ram 1500, Jeep Wrangler could use aluminum.