Fiat, Italy's largest manufacturer and the country's struggle to adapt to a symbol of globalization, 115 years after the home.
Agnelli family control and other investors to hold its final shareholders meeting here today, the final vote to approve the merger with Chrysler seal the Italian Fiat company. Created in Italy, Canada, CEO Sergio Marchionne, Fiat Auto NV Chrysler will be incorporated under the laws of the Netherlands, with headquarters in the UK listed on the Stock Exchange of Hong Kong and New York.
"Birth of the FCA will end Fiat precarious life," chairman John Elkann, the late Fiat patriarch Gianni Agnelli's grandson, who said before the meeting. "This is the first time we have a different point of view: there is no need to play the game of survival."
The merger will create the world's seventh largest carmaker.
Elkann told shareholders today that the Agnelli family remains committed to car manufacturers.
"Today I want to confirm my commitment to myself and my family, and continue to support the Chrysler Fiat, especially now that there are tremendous opportunities on the horizon," Erkan said that the dissolution of the family wanted to sell its stake rumors.
China's participation
Erkan said that the People's Bank of China has the Fiat Chrysler's 2 percent, making China's major investment group in a central bank.
Structure of international Fiat Chrysler car reflects the industry away from the national championship Fiat, which for decades boasted Italian heritage and Turin changes. American car manufacturers through the integration of resources, the company formerly known as FABBRICA ITALIANA Turin Motor Co., two can be better and like General Motors, Volkswagen Group and Toyota Motor Corporation giants compete, Marchionne said. Brush bankruptcy a decade ago shows the Italian approach is not sustainable.
"Marchionne did not want to leave Italy, self FCA hopes to become the focus of global players and the FCA must do this in order to be repositioned," Eric Gordon, in Michigan's Stephen · M University, said Professor : Ross School of Business. "It was a little sad to Italy."
Man Senzuolongge at IG Investment Strategy Group in Milan, Marchionne said I need to Wall Street, where the Fiat Chrysler plan will be positioned as the first listed lights in mid-October. There is no chance of the "surrounding areas, the Italian market has become," he said.
Economic stagnation
Blocked by the failure of the reform, the Italian economy stagnated in the past 14 years, and hired 10, the last 11 quarters. Unemployment near record levels, resulting in tens of thousands of Italians who went to look for a better future.
The same applies to Fiat. Strengthen supervision and requires a lot of sales to finance the development of clean engines, and extended to the growing markets such as China and India. Under the encouragement of the portfolio, Fiat plans to invest 550 billion euros (about $ 74 billion), an increase of 61% over the next five years, reaching 7 million, in 2018 far exceeds the supply of this year sales target mass less 10 million vehicles.
There Fiat as an independent company no choice. North American business, which did not exist before Fiat took control of Chrysler five years ago, accounting for 62% of second-quarter profit group working. In Europe, once the core manufacturing business lost 60,000 euros, because the market is gradually saturated two decades low. If there are no American division, Fiat will achieve profitability in 2012 and 2013.
Opel bid fails
In order to reduce sales to Italy, and is dependent on the production base, Malchow began looking for a partner about 10 years ago, when Fiat took over, this is the moment of financial tensions.
Search, including the failure of General Motors Opel unit without success, until the Chrysler 2009 bankruptcy. Due to the possibility of third-largest carmaker to settle in the United States, the U.S. government gave Fiat the opportunity to turn around the company from Michigan.
Fiat's headquarters will be relocated near the famous old Fiat Lingotto factory villa on the ceiling of the elliptical orbit, now house shops, hotels and theaters, a sign that Italy can continue to move forward. The new location will be in Slough, England, until Fiat opens London office later this year. Milan will be downgraded to a secondary listing of shares of the FCA.
London headquarters will employ about 50 people, mainly in financing activities, two people familiar with the details of the exchange, told Automotive News Europe in May.
Elkann and Marchionne will be in London, one of the sources of executive offices.
Marchionne has promised to keep the factory open to all Fiat of Italy, re-employing about 30,000 workers in line, who are the main card.
To do this, they plan to build a compact Jeep traitor, and Chrysler brands other models in Italy. Fiat also plans to expand the luxury brand name Alfa Romeo and Maserati across the globe to compete with BMW, Audi and Porsche likes.
However, this agreement is not a panacea. FCA lack of significant operations in China and Latin America are struggling. Even before Chrysler merger ended, Fiat has been a few weeks merger or agreement with Volkswagen and France / Peugeot recently - Citroen PSA-related. Although Fiat has publicly denied the talks, the report reflects the Fiat achieve its objectives and in his ability to contract fairytale Marchionne intoxicated, investor skepticism.
Fiat in Chrysler's response, "the poor child, Cinderella at the ball," Marchionne said in June. "People in the United States is really good, they like what happened."
Marchionne has melted and the United States is ready to finance its ambitious 48 one billion € ($ 64 billion), with 60% growth in 2018 five times earnings and net sales.
After saying:
Except for the very highest echelons of staff functions having mostly to do with FCA's financial, regulatory and administrative functions pertaining to being a publicly-traded global business, precisely what line functions having anything to do with actual product engineering, design, production and sales will be leaving their longstanding divisional homes of Turin and Auburn Hills?
Certainly each brand house has enough unique local regulatory, operational and support responsibilities to leave even the most senior levels of certain departments right where they've always been. The corporate financial filings may read Netherlands B.V., but I suspect the overwhelming majority of any functions having anything to do with all but issuing shares or debt, preparing and reporting financials and paying taxes will, for all intents and purposes, remain just where they've been.
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