Fiat Chrysler will HQ in London England.

**brizee** · May-09-14, 03:04 PM

The quicker this city divorces from one industry the better off it will be.

http://www.detroitnews.com/article/2...uarters-London

**iheartthed** · May-09-14, 03:53 PM

Will there be a banner in London that reads "Imported from Detroit"?

**Danny** · May-09-14, 07:05 PM

Originally Posted by iheartthed

Will there be a banner in London that reads "Imported from Detroit"?

It would say, F.C.A. imported from London.

**Hermod** · May-09-14, 04:48 PM

There are a lot of corporation wanting to base in Great Britain or Ireland for tax purposes. DC needs to get their collective heads out of their butts.

**DetroiterOnTheWestCoast** · May-09-14, 05:20 PM

Originally Posted by Hermod

There are a lot of corporation wanting to base in Great Britain or Ireland for tax purposes. DC needs to get their collective heads out of their butts.

Yes, because according to the GOP corporations are people - but people who shouldn't have to pay taxes.

**Hermod** · May-09-14, 05:54 PM

Originally Posted by DetroiterOnTheWestCoast

Yes, because according to the GOP corporations are people - but people who shouldn't have to pay taxes.

Water seeks its own level.

When you are in competition with other countries for business, you have to seek a level playing field.

If there were no tax advantages to going elsewhere, the companies would stay here and pay taxes at the US level.

Consider this:

At a tax rate of zero, the government collects zero taxes.
At a tax rate of 1%, they collect a given amount of taxes.
Raise that to 2% and they collect double what they do at 1%.
At a tax rate of 100%, they do not collect 100 times the money they do at 1%, they collect zero taxes at a tax rate of 100%.
Ergo, there is a curve which begins at zero at 0% rises to a peak and returns to zero at 100%.
At some point, the curve peaks yielding the maximum amount of taxes to the government. That is the "sweet spot".
If the purpose of taxation is to support the government, tax at the sweet spot.
If your purpose for taxation is to get revenge or to destroy, tax as high as you want, but get less money.

**Danny** · May-09-14, 06:59 PM

The Big Three is now become the Big Two. We already lost American Motors long ago.

**Danny** · May-09-14, 07:00 PM

Originally Posted by DetroiterOnTheWestCoast

Yes, because according to the GOP corporations are people - but people who shouldn't have to pay taxes.

They are people made of liquid money!

**Cliffy** · May-10-14, 04:07 PM

Originally Posted by DetroiterOnTheWestCoast

Yes, because according to the GOP corporations are people - but people who shouldn't have to pay taxes.

Seriously. Thats why this country is going to shit. Nobody wants to pay taxes. No pride. Nothing. People will sell their own mother to save a dime in this country.

**canuck** · May-09-14, 07:00 PM

Hermod/Water seeks its own level.

I suppose any tax advantage they get in a London HQ will quickly be diluted with the perks and salaries for the suity set and whatnot in rental fees.

"This is captain Sergio Marchionne speaking. We are now circling London, at 17,000 ft altitude, it is a beautiful crisp morning today; we will be landing at Heathrow in approximately 15 minutes and are experiencing some delay due to particularly heavy traffic at the airport this morning. Welcome to the home of 17,000£ monthly mortgage fees."

**mtburb** · May-09-14, 07:14 PM

If Chrysler actually moves to London: industries will start leaving Auburn Hills; Great Lakes Crossing will eventually close permanently [[and so will all other nearby retailers), even the Pistons will give up and move into Ilitch's new Midtown arena.

**Hermod** · May-09-14, 07:58 PM

Originally Posted by mtburb

If Chrysler actually moves to London: industries will start leaving Auburn Hills; Great Lakes Crossing will eventually close permanently [[and so will all other nearby retailers), even the Pistons will give up and move into Ilitch's new Midtown arena.

The Auburn Hills folks will stay in place and still have jobs. This is the President/CEO and his inner circle who are "planting the flag" in London to avoid US and Italian taxes.

**davewindsor** · May-09-14, 09:02 PM

Originally Posted by Hermod

The Auburn Hills folks will stay in place and still have jobs. This is the President/CEO and his inner circle who are "planting the flag" in London to avoid US and Italian taxes.

I think it's more about London's prestige as a financial center than taxes. Their reputation is up there with Manhattan.

If it was just about taxes, it would make more sense for them to plant that flag in Bulgaria, where the corporate tax rate is half that of London and they have a flat personal income tax rate of 10%. Bulgaria is also a European Union member and NATO member and has universal medicare. If it was just about the lowest taxes, Bulgaria is the best deal in the EU.

**Bham1982** · May-09-14, 11:44 PM

Originally Posted by davewindsor

I think it's more about London's prestige as a financial center than taxes. Their reputation is up there with Manhattan.

If it was just about taxes, it would make more sense for them to plant that flag in Bulgaria, where the corporate tax rate is half that of London and they have a flat personal income tax rate of 10%. Bulgaria is also a European Union member and NATO member and has universal medicare. If it was just about the lowest taxes, Bulgaria is the best deal in the EU.

Why would Chrysler move to Bulgaria? That makes no sense.

Every country has lower corporate taxes than the U.S. It makes sense to incorporate somewhere English-speaking, and with airport connections. But it has no real effect on staffing in Auburn Hills or anywhere else.

**davewindsor** · May-10-14, 03:43 AM

Originally Posted by Bham1982

Why would Chrysler move to Bulgaria? That makes no sense.

Every country has lower corporate taxes than the U.S. It makes sense to incorporate somewhere English-speaking, and with airport connections. But it has no real effect on staffing in Auburn Hills or anywhere else.

Obviously you can't comprehend simple text. Like I said, if it was JUST about lower taxes, they would move to Bulgaria. BUT, it's more than being JUST about taxes. London has prestige as a financial center. Comparing London to Sophia, Bulgaria, in the financial world is like comparing Harvard University to a community college in the educational world. Community college is a lot cheaper, but it hasn't got the prestige like Harvard. It's just like the "prestige" of wearing a Rolex vs. a Timex or driving a Rolls Royce vs. a Ford Fiesta. Do you get what the word "prestige" means yet?? It's very prestigious to have your world HQ in London.

It wouldn't surprise me if just setting up their HQ in London is going to raise Fiat's Moody's rating that was downgraded to B1 a few months ago https://www.moodys.com/research/Mood...ook--PR_292371

BTW last I checked, Italy's main language isn't English either--it's Italian, yet Turin has been Fiat's world HQ for a long time. As well as Bulgaria being an EU member, they have airports.

**Dan Wesson** · May-10-14, 06:16 AM

Yeah it's not taxes alone causing the move. As mentioned before "The City of London", [[financial district) is the global place to be along with New York City.

Another reason is that in London the business regulations are more lax and less enforced than here in the states.

It's a move not unlike a lot of american corporations using Delaware as the state to incorporate in or shipping companies "flying the flag convenience" from Liberia.

Then again they could just be reading the hand writing on the wall.

The financial future is sliding eastward eventually ending up in the Far East.

**Khorasaurus** · May-10-14, 08:33 AM

I assume they will also keep the office/employees that work downtown at "Chrysler House?"

If they're not getting rid of anyone in Auburn Hills, I doubt they're getting rid of anyone in Detroit, but the article didn't mention it.

**douglasm** · May-10-14, 10:32 AM

I get the impression the grumblings are a little like what hit Seattle when Boeing moved it's HQ to Chicago.

**AuburnSpeedster** · May-10-14, 12:03 PM

The point is that its not where the real operations will occur. That will stay where it has been. So focus on what matters, the workers will still work in Michigan.

**Dan Wesson** · May-10-14, 01:18 PM

Originally Posted by AuburnSpeedster

The point is that its not where the real operations will occur. That will stay where it has been. So focus on what matters, the workers will still work in Michigan.

Recent past experience shows that; yes, the workers stay in Michigan but the shop and machinery don't.

**MikeyinBrooklyn** · May-10-14, 01:41 PM

No surprise that a European company wants a European HQ.

**douglasm** · May-10-14, 03:22 PM

Hey guys, we're talking about the corporate offices here, not manufacturing or research facilities.

And, it should be noted that FCA [[the holding company that owns both Fiat and Chrysler) is NOT headquartered in Milan or Detroit, but currently has it's home offices in Amsterdam and will be moving from there to London.

**BagAJellyDonuts** · May-11-14, 10:08 AM

Truth is, if FCA really wants to make money, just close down Fiat.

This really is less of a slap against Chrysler than it is against Fiat. Even GM which is growing so large in China is still here at least in "profile". But what people are ignoring is how did Chrysler end up like this? First those worthless lying slimy scumbags from Daimler talked Bob Eaton into selling the passwords to the bank accounts. And it was all done with the blessing of "our" government and the public. Admit it, people will piss on GM but admire Mercedes Benz. And for all the whining about Government Motors, where Chrysler is right now has been done with huge contributions from taxpayers and all of it is leaving again with the blessing of incompetent legislators. We can't come up with any cohesive tax strategy but every one of them and us are suckers for a tax plan that "gets the other guy". States fighting against states, party vs party and none of us agree the real problem is who we vote for.

Complain all you want about ten billion supposedly lost on a GM bailout. It really was a stupid move, that rescue could have easily been accomplished in a far more economical manner. But what the government has done with Chrysler is far worse. Not only did they act like idiots kissing the ass of the lying bastard Germans, now after watching bones get picked, they have gifted Chrysler to another sleaze merchant and we act all giddy about it. Whats' the old saying about fooling twice?

**AuburnSpeedster** · May-11-14, 07:43 PM

Originally Posted by BagAJellyDonuts

Truth is, if FCA really wants to make money, just close down Fiat.

This really is less of a slap against Chrysler than it is against Fiat. Even GM which is growing so large in China is still here at least in "profile". But what people are ignoring is how did Chrysler end up like this? First those worthless lying slimy scumbags from Daimler talked Bob Eaton into selling the passwords to the bank accounts. And it was all done with the blessing of "our" government and the public. Admit it, people will piss on GM but admire Mercedes Benz. And for all the whining about Government Motors, where Chrysler is right now has been done with huge contributions from taxpayers and all of it is leaving again with the blessing of incompetent legislators. We can't come up with any cohesive tax strategy but every one of them and us are suckers for a tax plan that "gets the other guy". States fighting against states, party vs party and none of us agree the real problem is who we vote for.

Complain all you want about ten billion supposedly lost on a GM bailout. It really was a stupid move, that rescue could have easily been accomplished in a far more economical manner. But what the government has done with Chrysler is far worse. Not only did they act like idiots kissing the ass of the lying bastard Germans, now after watching bones get picked, they have gifted Chrysler to another sleaze merchant and we act all giddy about it. Whats' the old saying about fooling twice?

Except the difference between Daimler and Fiat is that Fiat is actually running Chrysler well. Their sales have seen crazy growth that is far beyond the rest of the industry. The Daimler [[and following Cerberus era) was a very bad time for Chrysler. Gifting Chrysler to another foreign company may not have been the "right" thing to do. But it certainly has worked out for the better. Their cars and profits have both improved.