The board of directors of Italian carmaker Fiat has approved the formation of Fiat Chrysler Automobiles (FCA) as a fully integrated, unified global automaker.
This follows Fiat’s acquisition in early January of the remaining equity interest in US vehicle manufacturer Chrysler, previously held by the Veba Trust, in a $4.35-billion deal.
Fiat acquired 58.5% of an ailing Chrysler in 2009.
Over the last few years, Chrysler has changed hands from German carmaker Daimler to investment firm Cerberus, under which it filed for Chapter 11 bankruptcy protection in the US in 2009. A reorganisation of its business during this period brought Fiat on board.
In order to establish “a true peer to the major global automotive groups, in both scale and capital market appeal”, the Fiat board announced in January that it had decided to establish FCA, organised in the Netherlands, as the parent company of the new group.
Following a period during which the Chrysler and Fiat corporate logos appeared side by side, FCA now sports a new corporate logo, representative of a unified identity.
FCA’s common shares will be listed in New York, in the US, and Milan, Italy.
New Chapter“A new chapter of our story begins with the creation of Fiat Chrysler Automobiles. “A journey that started over a decade ago, as Fiat sought to ensure its place in an increasingly complex marketplace, has brought together two organisations, each with a great history in the automotive industry and different, but complementary, geographic strengths,” says Fiat chairperson John Elkann.
“Five years ago, we began to cultivate a vision that went beyond industrial cooperation to include full cultural integration at all levels. “We have worked tenaciously and single-mindedly to transform differences into strengths, and break down barriers of national-istic or cultural resistance,” adds Fiat CEO and Chrysler Group CEO and chairperson Sergio Marchionne.
“Today, we can say that we have succeeded in creating solid foundations for a global automaker with a mix of experience and know-how, on a level with the best of our competitors. “An international governance structure and listings will complete this vision and improve the group’s access to global markets, bringing obvious financial benefits.”
The existing organisation, based on four operating regions, will remain central to the operating and management structure of the new group, says FCA in a statement.
“All activities forming part of FCA will continue with the same mission, including manufacturing plants in Italy and elsewhere around the globe, with no impact on headcount.”
The group is set to present a long-term business plan to the financial community at the beginning of May.
The impact on the South African and other international markets has yet to be assessed, but will be relayed when known, reports Fiat Group Automobiles South Africa and Chrysler South Africa.
The companies already share many functions locally and have the same CEO.