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article imageFiat becomes Fiat Chrysler Autos and leaves Italy

By Ken Hanly     Aug 2, 2014 in Business
Rome - There is no more Fiat or Chrysler just FCA or Fiat Chrysler Autos with world headquarters in Auburn Hills MIchigan USA after the Chrysler merger with Fiat. 80 per cent of Fiat board members voted for the merger on Friday ( August 1).
FIat will leave Italy after 115 years according to this source. The world's 7th largest car producer hopes the move will help it survive according to John Eikann who is a grandson of Gianni Agnelli who founded Fiat in 1899. The new company will be incorporated in the Netherlands and will be listed on the New York Stock Exchange. Fiat was Italy's largest manufacturer but will be moving to the UK. Eikann said:
"For the first time we have a different perspective: we don't need to play a game of survival,The merger that we present today is an epochal leap because after 115 years it marks the end of a long historical cycle. There are emotional aspects related to the operation, [we] had to change the name and registered office but the project from which Fiat Chrysler Automobiles is born and opens a new future for our company, even from the corporate point of view, international stature, as well as concrete and solid growth prospects,"
Fiat is hoping that sales will increase to 7 million cars a year, increasing profit by 500 per cent and sales by 60 per cent by 2018. The company will invest $74 billion and is particularly targeting the Asian market. The Italian plants are carrying out mass layoffs as the European divisions lose money while in the US the two companies have done well. The name FIat Chrysler Automobiles (FCA) was introduced in January. Fiat took over running Chrysler in 2009 with the help of the US government after Chrysler went bankrupt.
The move from Italy is not surprising as the Italian economy has not been growing for years. There is over 12 per cent unemployment but among youth it was a whopping 43.7 per cent in June.
Fiat is a global player in auto manufacturing. Outside of Italy the most Fiat brand cars are produced in Brazil where it is the market leader. However, it also has factories in Argentina, Poland, and Mexico. It also licenses production of its vehicles in many countries and also has joint ventures in Serbia, France, Turkey, India and China.
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