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Following its acquisition of all remaining shares in Chrysler from the United Auto Workers VEBA Trust earlier in the month, Italian automaker Fiat has rebranded itself Fiat Chrysler Automobiles (FCA) in recognition of its fully-integrated status. FCA will be registered in the U.K., for what the company say are taxation purposes.
A separate Fiat Chrysler Automobiles N.V., registered in the Netherlands, will serve as parent company for FCA, and common shares for the new automotive giant will be listed on the New York Stock Exchange as well as an index in Milan. Fiat shareholders will receive one FCA common share for each Fiat share they hold. The transaction is expected to be completed by the end of the year.
FCA will present a long-term business plan to the financial community at the beginning of May 2014, which is expected to include a detailed strategy for the struggling Alfa Romeo brand. Other brands FCA are responsible for include Dodge, Jeep, Ram and SRT as well as Ferrari, Maserati and Lancia.
“A new chapter of our story begins with the creation of Fiat Chrysler Automobiles,” Fiat chairman John Elkann said in a statement. “A journey that started over a decade ago, as Fiat sought to ensure its place in an increasingly complex marketplace, has brought together two organizations each with a great history in the automotive industry and different but complementary geographic strengths.”
Meanwhile, Sergio Marchionne, the CEO that was a key player in the merger, said in a statement, “Today is one of the most important days in my career at Fiat and Chrysler--five years ago we began to cultivate a vision that went beyond industrial cooperation to include full cultural integration at all levels.”
Marchionne is expected to continue running the company for at least three more years. The only question remaining is where he might be stationed the most, as FCA is yet to announce a location for its new headquarters. Right now most decisions are made from either offices in Detroit or Milan.
Earlier today, Fiat announced its fourth quarter profits had risen 5 percent to 931 million euros ($1.27 billion) from 887 million euros a year earlier. Chrysler, meanwhile, posted a net income of $1.6 billion for the same period, up from $378 million a year earlier although the latest result was aided by a one-time tax gain of $962 million.