Fiat is considering moving its corporate headquarters to the United States following a planned merger with Chrysler Group, acording to a report from Bloomberg, which cites three people familiar with the matter.
The report says Fiat and Chrysler CEO Sergio Marchionne are analyzing the switch from Turin to the United States, as North America has become the primary revenue and profit source for the carmaker. In 2012, for example, Fiat generated 75 percent of its operating profit in North America.
The unnamed sources added that no final decision on the headquarters has been made yet, with other options being examined as well. They also said Fiat will keep its European headquarters in Turin at the Lingotto building. A Fiat representative declined to comment on the report.
It is not the first time we hear about Fiat mulling a move for its corporate HQ to the U.S., but it looks like the option is being taken more seriously than before, especially since Sergio Marchionne said last month that the merged company should be listed at the New York Stock Exchange. Fiat is currently listed in Milan.
It goes without saying that, moving Fiat’s headquarters from Italy would not go down well with the government and Italians in general, especially now that the country’s industrial sector is in decline. As everyone knows, Fiat is a symbol of Italy’s industry.
Nevertheless, when one takes into account that Chrysler has become the group’s profit generator, while Fiat had total losses of more than €700 million ($900 million) last year, the move looks logical. Furthermore, the acquisition of Chrysler in 2009 has heavily reduced Fiat’s dependence on Europe. Last year, Europe represented 24 percent of the group’s €84 billion in revenue, while in 2004 the region accounted for more than 90 percent of its €27 billion in sales.
By Dan Mihalascu
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