A new car company has today been created: Fiat Chrysler Automobiles, or FCA, which will be Dutch-registered, UK-based and listed on the New York Stock Exchange.
It means Fiat’s 115-year history of being a proudly all-Italian company has drawn to a close. Fiat is now, like Chrysler, an international division of that soon-to-be-familiar acronym, FCA.
Merging the two car companies has officially created the seventh-largest car company in the world, with CEO Sergio Marchionne planning a massive €55 billion investment drive to quickly move up the rankings.
The ambition of this is staggering: by 2018, Marchionne wants to be selling nearly two-thirds more cars than the companies are today, swelling deliveries to 7 million cars a year. For context, Toyota and Volkswagen are currently selling around 10 million cars a year.
Such is the scale of investment required, Marchionne’s priority is to make the group attractive to international investors. This is a key reason for merging the two brands and moving them to neutral registration and HQ domiciles.
Both the UK and the Netherlands have been chosen to avoid controversy in combining two proud US and Italian companies. FCA will move into its new London HQ by the end of the year.
Shareholders have just approved the Fiat-Chrysler merger, creating FCA. Motoring Research will bring you more news from the emergence of this new global motoring giant as we get it…