[Allpar News System]

Speaking at the annual shareholders' meeting in Turin yesterday, Chrysler/Fiat CEO Sergio Marchionne said there is a better than 50% probability that the merger of the two automobile companies will be completed by June of next year. In comments quoted in Italian financial newspaper Il Sole 24 Oro, Fiat Group Chairman John Elkann said the merger is "inevitable" and quoted his grandfather Gianni Agnelli, who said, "We are too small compared with the competition we face: Fiat still has to grow. The only remaining stumbling block is negotiating a firm price with the United Auto Workers retiree healthcare trust, which owns the remaining  41.5% of Chrysler not held by Fiat. Fiat has exercised its options on two small, 3.3% tranches but a decision on a fair price remains in the hands of a Delaware Chancery Court judge whose decision is already months overdue. That decision will help place a correct..

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[Charger Red]

Love this part the most :

“But the principal reason that our group has transformed itself and expanded internationally is to escape from the isolation that would have jeopardized its future."

 

[MoparNorm]

For the last two years, he has been hinting and setting up the narrative that could cushion the blow for Italy, should the combined company be headquartered elsewhere.

 

[guyverfanboy]

Love this part the most :

“But the principal reason that our group has transformed itself and expanded internationally is to escape from the isolation that would have jeopardized its future."

I very much agree. Automakers really have to grow into a global automaker to survive.

 

[RVC]

Replace FIAT with Chrysler...the narrative really doesn't change much. One of the reasons Chrysler suffered so much during the crisis was that it was isolated or confined inside the US market.

But I agree, it's been said before that a sensible solution (business-wise) would be to put HQ in fiscally-friendly Netherlands or Luxembourg, and list the new entity both in NY and Milan. Then each region would have its center:
- Turin for EMEA
- Detroit for NA
- Belo Horizonte for Brazil and Mercosur
- Changsha for China and Asia
- Ranjangaon for India possibly, given the size of the market.

 

[Charger Red]

Replace FIAT with Chrysler...the narrative really doesn't change much. One of the reasons Chrysler suffered so much during the crisis was that it was isolated or confined inside the US market.

But I agree, it's been said before that a sensible solution (business-wise) would be to put HQ in fiscally-friendly Netherlands or Luxembourg, and list the new entity both in NY and Milan. Then each region would have its center:
- Turin for EMEA
- Detroit for NA
- Belo Horizonte for Brazil and Mercosur
- Changsha for China and Asia
- Ranjangaon for India possibly, given the size of the market.

Business principles aside, nationalistically speaking, my vote would be for HQ en Suisse

 

[MoparNorm]

Business principles aside, nationalistically speaking, my vote would be for HQ en Suisse

They are likely to select a location based upon a tax advantage, not sure there is one at that location. Any info?

 

[66coronet]

Replace FIAT with Chrysler...the narrative really doesn't change much. One of the reasons Chrysler suffered so much during the crisis was that it was isolated or confined inside the US market.

But I agree, it's been said before that a sensible solution (business-wise) would be to put HQ in fiscally-friendly Netherlands or Luxembourg, and list the new entity both in NY and Milan. Then each region would have its center:
- Turin for EMEA
- Detroit for NA
- Belo Horizonte for Brazil and Mercosur
- Changsha for China and Asia
- Ranjangaon for India possibly, given the size of the market.

Chrysler hasn't really taken off too much in some markets. Markets that require a 2.0L motor or smaller. Where they tax the size of the motor.

 

[romalerig]

Delaware ?

 

[Charger Red]

They are likely to select a location based upon a tax advantage, not sure there is one at that location. Any info?

Nothing other than the Piedmont region is very close. I didn't mean to raise a "non-issue."

Bermuda would be a better tax haven than Switzerland but again, I truly know nothing in this regard.

 

[MoparNorm]

Delaware ?

State tax is competitive, but in Delaware, they would be subject to Federal taxes, among the highest corporate tax rates in the world, so Im not holding out hope they bring the combined company here, it would be nice, but surprising.

 

[jerseyjoe]

Need to save as much money as possible to put into new product. I think my view of a MOPOR or no car is going into storage, the world is changing. May go strictly Plymouth.

 

[Charger Red]

Need to save as much money as possible to put into new product. I think my view of a MOPOR or no car is going into storage, the world is changing. May go strictly Plymouth.

Turbo Sundance anyone?

 

[Jose Santos]

The Chrysler building in New York sounds tempting...

I'm still wrapping my head around on how this merge will end up exactly.

 

[hemi_magnum]

The Chrysler building in New York sounds tempting...

I'm still wrapping my head around on how this merge will end up exactly.

Honestly, I've been hoping for that since forever. Not a day goes by that I don't walk past that structure and hope there were Chrysler offices occupying it instead of dentists and such. However unrealistic and financially unviable it may be, it's just something that would complete Chrysler in my eyes.

Never say never, I suppose. I mean, the Tonight Show is coming back to the city after 40 years out on the west coast (after major tax breaks...)

That said, I'm in agreement with the consensus that a neutral, tax-friendly HQ is in the cards. Where that may be, well, throw a Dart on a map and see where it lands. pun kinda-sorta intended.

As for the merger itself, Chrysler and Fiat are meant for each other, at least if you think about it like a puzzle. There's a period of adjustment and growing pains that I think is fair to say we're going through right now and will continue for at least the next couple of years. I think I need to give it until the second generation of post-partnership vehicles to ultimately and fairly decide where I stand with the fully integrated company.

So obviously the most important question is, Fiat-Chrysler, Chrysler-Fiat, Chrysleriat, Fiatsler, or just Fiat with Chrysler being a sub-group? If they're true equals, and Chrysler bringing to the table just as much, pretty sure they deserve their name next to Fiat..

 

[Jose Santos]

Honestly, I've been hoping for that since forever. Not a day goes by that I don't walk past that structure and hope there were Chrysler offices occupying it instead of dentists and such. However unrealistic and financially unviable it may be, it's just something that would complete Chrysler in my eyes.

So obviously the most important question is, Fiat-Chrysler, Chrysler-Fiat, Chrysleriat, Fiatsler, or just Fiat with Chrysler being a sub-group? If they're true equals, and Chrysler bringing to the table just as much, pretty sure they deserve their name next to Fiat..

The Chrysler building is as iconic as the GM towers in Detroit, so one can dream. :innocent:

I'm not too keen on combining names, that's what I can't figure out. Fiat-Chrysler or Chrysler-Fiat sounds more appropriate. I don't thing Marchionne would put Chrysler as a sub-group since right now it's their life-line. Takes two to tango.