With Italy-based Fiat and Michigan-based Chrysler merging into the newly-minted Fiat Chrysler Automobiles, the two companies will be meeting in the middle for the location of their next headquarters. According to a report from Automotive News, the new Fiat Chrysler Automobiles headquarters will be in London per Sergio Marchionne’s statement to investors at the recent five-year plan meeting that outlined the company’s future product and business plans.
Fiat is currently headquartered in Turin, Italy, while Chrysler has its home in Auburn Hills, Michigan. With Fiat gaining full control of Chrysler in January, a move to London helps the company avoid choosing either Fiat or Chrysler’s hometown, and also makes sense because of that city’s status as a financial center. Tax reasons are also in play for the company’s move, as the U.K. has a lower corporate tax rate than Italy and the U.S.
The London HQ will primarily contain the board and functions of Marchionne’s office, but Marchionne emphasized to investors at the five-year plan meeting that he will not give up any of his responsibilities in the U.S. Operating activities like engineering, manufacturing, and design facilities for the various FCA brands will remain the same globally.
The move will also not affect jobs in Italy or in the U.S. We don’t know yet when the move to London will take place, but the holding company for Fiat Chrysler Automobiles is temporarily based in Amsterdam, Netherlands as it stands now. Stay tuned for more news about Fiat Chrysler Automobiles’ new headquarters as the company embarks on its ambitious future plans.