You won't be seeing Sergio Marchionne in his famous sweaters running day-to-day operations of Fiat Chrysler Automobiles from Michigan. Although, he won't be doing it from Italy, either. The FCA CEO recently announced that the company's corporate headquarters would be located in London.

"Headquarters will be in London. 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 US," said Marchionne to Automotive News at a press conference.

When the creation of FCA was announced, the company said its tax domicile would be in the United Kingdom. But it gave no specific location at that time. The business is still keeping most of the details under wraps.

Chrysler spokesperson Gualberto Ranieri did confirm to Autoblog that the move to London will happen "later this year." FCA board meetings will be held in London, as will some corporate functionals. "But that will not mean that Mr. Marchionne will give up his operational duties in the US, including his office in Auburn Hills," Ranieri said.

Industry analysts speaking to AN say that the London location makes sense from a strategic standpoint. It doesn't show any bias between Chrysler in Auburn Hills or Fiat in Turin.

Marchionne is also fighting against investors' skepticism about FCA's recently revealed five-year plan. After the stock fell 12 percent, he and chairman John Elkann bought 130,000 and 133,000 shares respectively of Fiat stock to show their support, according to AN.


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  • 44 Comments
      Card13
      • 7 Months Ago
      Considering Chrysler has well over 10,000 employees at the Auburn Hills complex, I doubt they're gonna send them all to London. It will probably be a small office with only the top executives and a group of business/financial people. The cars will continue to be designed, engineered, and built in North America (therefore, those profits that everyone is concerned about will surely be invested back into the Michigan office)
      Jesus!
      • 7 Months Ago
      That officially does it for me. This will be my last Chrysler.
      Steve
      • 7 Months Ago
      My grandfather would turn in his grave if he knew this was going on. I guess we can knock them off the Big 3 list. Might as well move them out of Detroit and stick them in London or Italy. Way to sell out Chrysler.
        Jesus!
        • 7 Months Ago
        @Steve
        Poor management, greed, and low quality products got them here. Its unfortunate but each of our American automakers did the exact same thing. Ford just barely squeezed by bankruptcy. Sad sad sad. Too bad there isn't a new American company to do things the right way.
          Chris
          • 7 Months Ago
          @Jesus!
          You can throw complacency in there as well because, for decades, the Big 3 thought they could get by on brand loyalty alone, and didn't take emerging competitors from Germany and Japan seriously enough. As their customer base started aging and dying off, it became more evident that the Baby Boomers and Gen Xers didn't embrace them in the same way their parents did as many came to prefer Hondas, Toyotas, BMWs, and Mercedes over Fords, Lincolns, Oldsmobiles, and Cadillacs. As a result, many of the American brands are gone, and the rest have set their sights on those same foreign competitors in order to appeal to the younger generations and those who they chose to ignore for far too long. They've been gaining ground in recent years, but this trend must continue in order to turn the ship around.
      Don Dada
      • 7 Months Ago
      Ha I'm loving this. Let's see how the good olé boys spin this one. Remember they still thinks Chrysler is an American company because of their headquarters. Isn't that the reason why they refuse to buy foreign because the money ends up at their headquarters?
      CBR1000 Racer
      • 7 Months Ago
      Fiat + Chrysler = good luck with that!
      AudiA4
      • 7 Months Ago
      That's a VERY bad PR move for their products and customer base in North America.
        AudiA4
        • 7 Months Ago
        @AudiA4
        Okay, why would there be four "thumbs down" on my comment? In what way would this NOT be a bad PR move for an American brand to have its headquarters moved to England? Maybe if it was a tea company...or chimney sweep implements. Sheesh.
      luigi.tony
      • 7 Months Ago
      haha
        r_dezi
        • 7 Months Ago
        @luigi.tony
        Its a sad day for the Italian auto industry.
        Jesus!
        • 7 Months Ago
        @luigi.tony
        For such a love of Italy I would think you of all people on here would be upset as well.
      Car Guy
      • 7 Months Ago
      It's sad that the corporate tax burdens are so punitive in the USA that a company like this chooses the UK.
        carboy55
        • 7 Months Ago
        @Car Guy
        Ridiculous. Do you know anything about British taxation? Any idea why virtually all of their athletes declare residence in the US or Monte Carlo? Do some research.
          Pdexter
          • 7 Months Ago
          @carboy55
          We are talking about companies, not people. He is right.
      Stephen Walton
      • 7 Months Ago
      Give it a year and Sergio will announce a new, new, new 5 year plan. And it will be just as unrealistic as this one is. Alfa Romeos will be sold through stand-alone Blackberry stores and the HQ will move to Dubai.
      Billy
      • 7 Months Ago
      Imported from London...
      dohc73
      • 7 Months Ago
      Kiss of death. Goodbye Chrysler forever. You will follow the fate of every other British car company now. Bad karma indeed.
        johnnythemoney
        • 7 Months Ago
        @dohc73
        Right, like Rolls-Royce, or Bentley, or Aston Martin, or Jaguar, or Land Rover, or Caterham, or Ariel, or Radical, or Lotus... oh wait, you surely consider those foreigners right? Expect for Ariel and Radical, unless 51% of the companies were purchased by anyone outside of Britain.
          dohc73
          • 7 Months Ago
          @johnnythemoney
          You're clutching at straws there, babe.
          johnnythemoney
          • 7 Months Ago
          @johnnythemoney
          That article is saying that A British cars were as good/bad as many others B there are still plenty of exotics built and sold from there. It's not saying they are not considered British companies because they are not 100% funded by British money. So I don't stand corrected. Yes many British companies, most mass market companies, went down in the last 40 years or so. The same actually happened worldwide, and obviously the country that had a lot of companies was bound to see more of them going then countries with just 3 of them. French brands were gone, Italian brands were gone, America closed down 5 "American" brands in the last 15 years out of 12 or so companies. So in times of shrinking market shares and unification products and markets, that is simply bound to happen, especially if British Leyland cars were so uninspiring. The French are left with 3 companies, with two actually under the same umbrella and both with shares belonging to the Government. Are they bad at managing companies only because of that or because they don't export cars here? Korea have only two companies, which are actually under the same larger one. Are they bad at that? Don't think so.
      1guyin10
      • 7 Months Ago
      This is a similar arrangement to what they did when Fiat Industrial and Case-New Holland merged. There really isn't anything surprising about it. It marks FCA as an international company, puts the headquarters in a relatively neutral location and also provides a beneficial tax structure.
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