Bad News for Sergio: Brexit Catapults Fiat Chrysler Off Key Stock List

After Britain referendumed themselves right out of the European Union last week, there was plenty of talk about how the country’s automakers would fare in the wake of the Brexit.

But what about an Italian-American automaker? Today, investment bank Goldman Sachs removed Fiat Chrysler Automobiles from their “conviction” buy list, citing uncertainty over the fate of the EU, Bloomberg reports.

The list names stocks that the bank’s investment braintrust expect to outperform. When a company gets on the list, investors can’t be far behind, hoping for a larger-than-expected return on their investment.

Goldman Sachs said it removed FCA from the list due to fear that Britain’s exit from the EU would lower economic growth throughout the EU, hampering vehicle sales. This, despite the fact that FCA claimed the Brexit would have little impact on its operations, despite having relocated its tax residency to the UK in 2014.

Ten days ago, FCA CEO Sergio Marchionne downplayed worry about the looming referendum in a media scrum, saying a potential “Leave” vote was “not that disastrous” for his company.

This morning, Marchionne spoke about the issue at a Fiat launch in Italy. “We don’t like the (outcome of) the vote, but a clear idea was expressed about the EU and so this should be revised,” he told an Italian wire service, adding that the vote should serve as a wake-up call to the EU to pay more attention to individual countries’ appeals for reform.

Marchionne essentially called for everyone to keep calm and carry on.

Despite being removed from the list, it wasn’t all bad news for Marchionne today. Goldman Sachs kept a “buy” rating on FCA’s stock.