The board of directors of Italian car maker 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 car maker 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 onboard.
In order to establish “a true peer to the major global automotive groups, in both scale and capital market appeal”, the Fiat board announced on Wednesday that has 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 an unified identity.
FCA’s common shares will be listed in New York, in the US, and Milan, in Italy.
“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,” said Fiat chairperson John Elkann.
“FCA allows us to face the future with a renewed sense of purpose and vigour.”
“Today is one of the most important days in my career at Fiat and Chrysler,” added Fiat CEO and Chrysler Group CEO and chairperson Sergio Marchionne.
“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 nationalistic or cultural resistance.
“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, said 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 to the South African and other international markets has yet to be assessed, but will be relayed as and when known, reported Fiat Group Automobiles South Africa and Chrysler South Africa on Wednesday.
The companies already share many functions locally, and have the same CEO.