Fiat CEO Sergio Marchionne Draws Fire For Plan To Move HQ Outside Italy To Avoid Taxes

Fiat CEO Sergio Marchionne, the veteran dealmaker who has just wrested full control of Chrysler Group from its union retirees, is about to unveil his next trick: moving the group's 115-year-old headquarters out of Italy.

While Marchionne has said a New York share listing is on the table, he is likely to base the new company in Europe under a tax-efficient UK domicile, sources close to the company say.

He is treading carefully in the United States and Italy, whose governments have bailed out Chrysler and funded temporary layoffs at Fiat. He is aware that Rome may intervene.

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randy3023 - 1/29/2014 2:37:27 PM

+1 Boost

Boo hoo. Poor italians. All want something for nothing!

Italians need to focus on the CORRUPTION in their government which has DEVASTATED their treasury, rather than whine as companies tired of the status quo rightfully bail.

Why are italians so feeble?

ParadoX - 1/29/2014 5:51:04 PM

+1 Boost

Italy's coalition government is weak. The political parties are going to use this as posturing for the next election. No way they allow this to happen.

nguyenvuminh - 1/29/2014 8:22:55 PM

+1 Boost

US companies, like Apple, shuffle their entities and operations all over the world to take advantage of tax and funding all the time, why would Fiat be any different? I really don't think much of Fiat but if they now own Chrysler, they can do what they think is right for them. If we're not happy with that, then maybe Chrysler should not have gotten themselves into financial dire to begin with.

MattDarringer - 1/29/2014 8:41:17 PM

+1 Boost

ALL industry analysts saw this coming. Marchionne has wanted to make Fiat an AMERICAN company with operations in Europe rather than an Italian company trying to manage an American operation.

xjug1987a - 1/30/2014 3:44:50 PM

+1 Boost

This is nothing but a good business decision. Companies are in business to make profits, and to do that means making profitable products and reducing expenses. Labor is the most expensive component and labor is an expense. Companies exist to make profits and enrich the shareholders not employ people and pay benefits & pensions. The Germans build in America because of the educated workforce and no union interference, as do the other transplants that have high labor costs. (FYI: After WWII the Italian govt was structured so that its very difficult for any party to seize power and thus nothing gets done.)

Will they allow this, well they'll not have any control over it. This is a paper shuffle and nothing more, but the savings will be significant. If the US didn't have the level of business taxes we have under this current admin, Marchionne may have just made FCA a US entity completely. Avoiding taxes is smart business, Marchionne seems to be brilliant, look what he's accomplished in the last few years.