Fiat S.p.A. has approved the formation of Fiat Chrysler Automobiles (FCA) as a fully integrated global car maker and revealed the newly formed company’s logo.
The formation of Fiat Chrysler Automobiles – now the world’s seventh-largest car maker – comes one week after Fiat completed its US$4.35 billion ($4.94 billion) acquisition of a 41.46 per cent stake in Chrysler previously held by United Auto Workers-affiliated retiree healthcare trust VEBA.
Fiat chairman John Elkann said the creation of FCA marks a new chapter in the brand’s story.
“FCA allows us to face the future with a renewed sense of purpose and vigour,” Elkann said.
Referring to the moment as “one of the most important days in my career”, Fiat and Chrysler Group CEO Sergio Marchionne said, “Today we can say that we have succeeded in creating solid foundations for a global automaker with a mix of experience and know-how on a level with the best of our competitors”.
Pending the approval of shareholders, FCA will be incorporated in the Netherlands, with, for tax purposes, a financial base in the UK. Common shares are to be listed in New York on the New York Stock Exchange and in Milan on the Mercato Telematico Azionario.
Though FCA will present its long-term business plan in May, Fiat says all activities forming part of FCA will continue, including manufacturing plants in Italy and elsewhere, stating there will be no impact on its workforce.
Last year, Chrysler posted a net income of US$2.8 billion ($3.2 billion), up from 2012’s US$1.7 billion ($2.0 billion), while the Fiat Group reported a 943 million euro ($1.5 billion) gain, down from 1.14 billion euros ($1.8 billion) in 2012.