Once the merger he plans for Fiat and Chrysler goes through, Sergio Marchionne says that Fiat-Chrysler could be registered as a corporation in the Netherlands, not Italy or the United States. Marchionne wants to have the combined company’s primary stock listing on the New York Stock Exchange and rules for corporate governance in the Netherlands are similar to those in the States.
Fiat Industrial is already moving its corporate headquarters to the Netherlands after its merger with its own American unit, CNH, is finalized in a few months, and when asked by Reuters if Fiat-Chrysler could do likewise, Marchionne said, “It’s possible”.
Chrysler is currently in talks with the UAW’s VEBA to buy the remaining 41.5% of Chrysler that it doesn’t yet own. A Delaware court is expected to rule on a price dispute with VEBA, which should resolve not just questions about how much it’s going to cost Fiat but also about the timetable of the two companies’ merger.
Marchionne wouldn’t comment on 2nd quarter earnings which are starting to be reported by automakers. Fiat’s financials will be released next week. Analysts predict a group before tax profit of $1.32 billion and a net profit of $402 million for the quarter, about what they earned in 2012.