Fiat Says Headquarters Move from Italy to U.S. Not "Order of the Day"

chrysler-auburn-hills-interior

Fiat is only a few steps away from having complete ownership in Chrysler, and CEO Sergio Marchionne has repeatedly said it's been his intention to fully merge operations since the Italian automaker took control of the company in 2009. Comments made by Marchionne made it seem like a move of the company headquarters from Turin, Italy to Auburn Hills was nearly moot. An official statement from Fiat denies such a move is imminent.

However, the cryptic language of the official denial does not permanently shut the door on the possibility, but rather states a headquarters move is not "the order of the day." It's expected the fully-merged Chrysler/Fiat will issue stock on the New York exchange, Reuters reports. Fiat currently owns 58.5 percent of Chrysler, and is in negotiations with the United Auto Workers for its 41.5 percent share in the company in form of the VEBA trust.

Chrysler's importance to Fiat today is a stark about-face to the situation just a few years ago when Fiat's investment kept the company from total liquidation. Chrysler and the UAW are currently hundreds of millions of dollars apart in their valuation estimates for the remaining shares. Discussions continue, but the final decision on the shares' valuation may be determined by a Delaware judge.

Source: Reuters

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