Fiat Chrysler Automobiles
|Founded||January 27, 2014 (announced)
August 1, 2014 (approved)
|Headquarters||London, United Kingdom|
|Key people||John Elkann (Chairman)
Sergio Marchionne (CEO)
|Products||Automobiles, commercial vehicles, auto parts, newspapers, production systems|
|Revenue||€83.957 billion (2012) as Fiat S.p.A., which has been merged into Fiat Chrysler Automobiles|
|Operating income||€3.814 billion (2012) as Fiat S.p.A., which has been merged into Fiat Chrysler Automobiles|
|Total assets||€82.119 billion (end 2012) as Fiat S.p.A., which has been merged into Fiat Chrysler Automobiles|
|Total equity||€13.173 billion (end 2012) as Fiat S.p.A., which has been merged into Fiat Chrysler Automobiles|
|Employees||214,836 (end 2012) as Fiat S.p.A., which has been merged into Fiat Chrysler Automobiles|
Fiat Chrysler Automobiles NV (FCA) is the company that Fiat S.p.A has been merged into. Technically, Fiat S.p.A. (which owns Chrysler through the Fiat Group) is merging into the new Netherlands based company, and not with Chrysler. The shareholders, board, and executive management of Fiat S.p.A. remain the shareholders, board, and executive management of Fiat Chrysler Automobiles, and Chrysler Group still remains a subsidiary. Following the merger, FCA will become the owner of the Fiat group, the holding company that contains many of the company's brands, such as Ferrari, Maserati, Fiat Group Automobiles, and Chrysler Group Automobiles. Chrysler Group will continue operating as a subsidiary.
The new holding company is to be incorporated in the Netherlands; FCA will be listed on the New York Stock Exchange on 13 October 2014, with an additional listing on the Mercato Telematico Azionario in Milan to follow.
The CEO, executive management and around twenty-two employees will operate out of London by the end of 2014. The other operating activities of the new group will remain unchanged, with manufacturing, design and engineering facilities remaining in Turin, Italy, and Auburn Hills, United States ( and other locations worldwide, including Canada, India, Mexico, Brazil, Argentina, Poland and China). This new group resulting from the integration of Fiat and Chrysler will be the seventh largest automaker in the world.
Fiat S.p.A. is expected to be merged into FCA by the end of 2014, as the board agreed to the terms on June 15, 2014, and the merger was approved by shareholders on August 1, 2014. The Fiat Group will become a wholly owned subsidiary of FCA.
FCA will include a wide range of automobile marques, including: Abarth, Alfa Romeo, Fiat, Fiat Professional and Lancia under Fiat Group Automobiles; Chrysler, Dodge, Jeep, and Ram Trucks under Chrysler Group. Other companies include luxury car (Maserati and Ferrari), components (Mopar, Magneti Marelli, Automotive Lighting), and engine (Fiat Powertrain Technologies, VM Motori) manufacturers, as well as firms working on production automation (Comau) and metal foundry Teksid (84.8% share).
The integration between Fiat and Chrysler dates back to 2009 after Chrysler filed for Chapter 11 bankruptcy reorganization on 30 April 2009. On 10 June 2009, Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat, and the U.S. and Canadian governments as principal owners. Over the next few years, Fiat gradually acquired the other parties' shares to take majority ownership of the company, and on 21 January 2014 Fiat completed the acquisition of the remaining 41.5% from the United Auto Workers, making Chrysler Group a wholly owned subsidiary. The overall cost to acquire Chrysler cost Fiat US$4.9billion, including a US$5.5 billion pension liability.
On 29 January 2014 Fiat announced a reorganization and intended merger into a new holding company incorporated in the Netherlands, with tax domicile in the United Kingdom and a dual listing on both the NY and Milan stock exchanges. A very similar structure was used for the combination of CNH Global N.V. and Fiat Industrial S.p.A. to form CNH Industrial. It was later confirmed that the company would have its headquarters based in London, considered controversial in both Italy and the United States due to Fiat being the largest private employer in Italy while Chrysler was bailed out by American taxpayers. Marchionne defended the decision, feeling that London was neutral ground and didn't want to show bias for one end of the company over the other.
On 6 May 2014, FCA announced a five-year plan and a major restructuring among the combined company, with much of the global growth being focused around Jeep, due to its high visibility globally as well as the growing SUV market in developing markets. Chrysler will be re-positioned as the company's mainstream North American brand to compete with Ford, Chevrolet, Toyota, and Volkswagen, while Dodge will focus on performance-based vehicles. Alfa Romeo will become the company's premium marque to compete with Mercedes-Benz, BMW, and Audi, while Maserati will be the company's ultra-luxury brand to compete with Bentley and Rolls-Royce. Fiat (which will remain the company's mainstream brand outside North America), Ram Trucks, and Ferrari will remain largely unchanged, while SRT was merged back into Dodge. Conspicuously absent in the announcement was Lancia, which was later confirmed to be withdrawing from all markets outside Italy, and possibly withdrawn altogether in 2018.
On 2 July 2014 Fiat clarified how it would proceed with the formation of FCA. Fiat S.p.A. (now wholly owning Chrysler Group) would be merged into Fiat Investments N.V., a Netherlands based company. Subject to shareholder approval on 1 August, Fiat Investments will then be renamed Fiat Chrysler Automobiles N.V. and will become the holding company of the Group. On August 1, 2014, the merger was approved by Fiat shareholders.
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