Marchionne: Fiat-Chrysler Could Be Dutch, Not Italian or American
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.
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The Americas are full of mindless and violent apes and the PIIGS are full of useless parasites. The Netherlands makes perfect sense for HQ in the Anglo-American Empire because the Dutch are bright and productive. Perhaps Luxembourg as well.
I think there would be a few factors to drive a company out of its homeland. Italy has never had a real stable government for starters. If you ran a multi-billion dollar a year business where would you take it in Europe? I would pick Germany, a Scandanavian country or even the Netherlands. It appears to be stable compared to the Mediterraneans countries at he moment. It is possible Italy will go bankrupt or taxes will hike to pay down debt or even both. I hope he succeeds at what ever he undertakes, without him Chrysler might be Chinese. The first thing Fiat/Chrysler has to do is resolve what model lineup they will have and stick to a plan. Being fluid is great, but you can be to fluid.
America is probably the worst country in the Western worlds to start business or have headquarters in. Complicated tax code, unpredictable taxes, unpredictable Government driven by pure political agenda instead of common sense, laws that nobody is able to understand and even Congress does not read them before passing. Then companies have to pay pensions and health care. I wonder why Ford or GM do not move their headquarters out of country. Germany, Netherlands and Scandinavian countries are examples where Government is driven by common sense and actually works and is even effective. Best automotive engineers are in Germany too.