Fiat Chrysler Automobiles CEO Sergio Marchionne has confirmed that the headquarters for the recently formed company will be based in London, England. The move means that many major decisions concerning Fiat and Chrysler, as well as their respective brands, will be made away from their traditional homes. Fiat's home is currently in Turin, Italy, while Chrysler is headquartered in Auburn Hills, outside of Detroit.
"Headquarters will be in London," Marchionne told Reuters. "It's clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn't mean that I'm giving up my operational responsibilities of the U.S.”
It’s been speculated since the formation of FCA back in January that the headquarters of the company might be located somewhere other than the U.S. or Italy. London was a leading possibility because FCA was originally registered in the U.K. for reasons the company said were tax-related. A separate Fiat Chrysler Automobiles N.V., registered in the Netherlands, serves as parent company for FCA.
Marchionne also said that the establishment of FCA’s headquarters in London won’t cost any jobs back in the U.S. and Italy.
On Tuesday, Marchionne and other senior FCA executives announced a five-year strategy for the company. However, the company’s share price dropped 12 percent the next day, with many analysts reported to be doubtful that Marchionne and his team of execs will be able to achieve their stated goals for the next five years. Some of those goals include boosting Jeep’s sales to 1.8 million units annually, turning Dodge into a performance brand, and expanding Alfa Romeo’s lineup to eight models from the current three.