Fiat Chrysler Automobiles

After buying out Chrysler, Fiat has reorganized as Fiat Chrysler Automobiles, incorporated in the Netherlands, with stock listed on the NYSE and Milan's MTA.

The interesting thing is the Netherlands incorporation. By incorporating there rather than Italy, it may open the door to locating corporate HQ in Auburn Hills rather than Turin. Marchionne has often commented about the severe security he receives when in Italy. His security is considered a government imperative. At times he has more state-funded body guards than Giorgio Napolitano.

http://media.chrysler.com/newsreleas...id=15290&mid=1

I could see the administration moving downtown [[Marchionne seems to be very attracted to what's happened down there) while the tech team, like with GM/Warren, remains in Auburn Hills.

I think we've reached a [[good) problem that downtown does not have much Class A office space available. Lets say they move 1,500 workers. Where could they fit that many people?

- One Woodward?
- One Detroit Center [[Former America Town)
- 1001 Woodward?
- Dare I say move Compuware out to another building and Chrysler in?

Clearly they would want something that can display a sign and have prominence in location.

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Originally Posted by 313WX

I could see the administration moving downtown [[Marchionne seems to be very attracted to what's happened down there) while the tech team, like with GM/Warren, remains in Auburn Hills.

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Its been discussed repeatedly that that option isn't happening. the HQ is barely 20 yrs old and was built specifically to get everything under one roof at one location. its the 7th largest office building in the US. If anything the head count at HQ in AH is going to shrink due to the merger. Marchione put 70 bodies in Detroit as some nice window dressing.

Also, if you saw the 60 Minutes piece on Marchionne a couple of yrs. ago, he is rarely in his office. He's constantly walking the floor interacting with designers, engineers, etc. and encourages his management team to do the same.

so what does it mean to have the "main headquarters" in the Netherlands but "tax status" in the U.K.? Will their U.S. tax burden decrease?

most companies have their financial arm in new jersey because the tax laws are lower. look up your credit card companies and they just might have a North Dakota address. it is called 'lessen the tax burden' Same reason rich folks and corporations search out the cayman islands to incorporate.

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Originally Posted by Chinman

most companies have their financial arm in new jersey because the tax laws are lower. look up your credit card companies and they just might have a North Dakota address. it is called 'lessen the tax burden' Same reason rich folks and corporations search out the cayman islands to incorporate.

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Just about everyone, rich and poor, seeks to pay less taxes. In fact, they seek to pay less everything. People pay the contractor who quotes them the lowest price; New Jersey Malls are filled with rich New York liberals paying a much lower sales tax rate than the one they impose on themselves; Delaware is full of corporate HQ because of it's tiny corporate tax rates; everyone tries to negotiate down the price of a car or a house; people go to Borders to browse books, then go home and buy them on Amazon, which is cheaper. To label these actions as those of "rich folks and corporations" engage in is to ignore the fact that it is an intelligent, responsible, and worthwhile exercise to try and make your money go a little further.

I would love Fiat Chrysler Automobiles [[a name I dislike, by the way; I would prefer just plain Chryler or ever just plain Fiat to the new version. Maybe it will grow on me) to have a stronger presence downtown. But I think it's unlikely. A major reorganization would be expensive without much of a benefit to the company, I think. We'd love it, sure. I think they will maintain most North American management and design in Auburn Hills, with a token presence [[although an appreciated one) downtown.

It seems kind of odd - the effective corp. tax rates in the Netherlands and UK are both around 25%. some other loophole must make that attractive