Fiat has just taken a major step away from its Italian heritage, as shareholders officially approved the company's merger with Chrysler. That move will lead to the formation of Fiat Chrysler Automobiles NV, a Dutch company based in Great Britain and listed on the New York Stock Exchange, according to Automotive News Europe.

The company captured the two-thirds majority at a special shareholders meeting, although there are still a few situations that could defeat the movement. According to ANE, roughly eight percent of shareholders opposed the merger, which is a group large enough to defeat the plan, should they all exercise their exit rights outlined in the merger conditions.

Meanwhile, Fiat Chairman John Elkann (pictured above, right, with CEO Sergio Marchionne and Ferrari Chairman Luca Cordero di Montezemolo), the great-great-grandson of Fiat founder Giovanni Agnelli, reaffirmed his family's commitment to the company beyond the merger. Exor, the Agnelli family's holding company, still maintains a 30-percent stake in Fiat.

"I want to confirm today my own and my family's commitment to continue to support Fiat Chrysler Automobiles, even more so now that there are big opportunities on the horizon," Elkann told shareholders, according to ANE.

FCA will set up temporary offices in Slough, England, roughly 20 miles outside of London. Its offices in the UK's capital, meanwhile, should be open by the end of 2014. Despite the shift to the UK, FCA will still maintain IT and administration functions in Fiat's traditional home, Turin. Italy will also continue to play a major role in vehicle production, with the upcoming Jeep Renegade slated for production there, as well as new vehicles from Alfa Romeo and Maserati.


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  • 27 Comments
      rsholland
      • 4 Months Ago

      For the most part I've been very happy with what Marchionne has been able to accomplish.

      fin
      • 4 Months Ago

      End of italian era? Fiat-Chrysler does not produce a single thing in the Netherlands or the UK. 

      Now the group is called FCA N.V. 

      By the way, Airbus is a N.V. too: "Airbus Group N.V." Which means "anonymous venture" in dutch. Is Airbus dutch?


        SloopJohnB
        • 4 Months Ago
        @fin
        Follow the taxes, ...
          RocketRed
          • 4 Months Ago
          @SloopJohnB
          The place of incorporation dictates governance and shareholder rights rules as well. One important aspect of Dutch rules (like German rules) is a requirement of auxilliary board representation for labor. Will Chrysler employees now be represented by labor in corporate governance? I didn't have time to read the proxy statements or resolutions.
        trenchanting
        • 4 Months Ago
        @fin
        N.V. basically means that it's a public trading company, whereas B.V. means it's a privately owned company. One of the companies within the Airbus Group is Fokker Technologies, an originally Dutch company.
      aatbloke1967
      • 4 Months Ago
      It isn't the end of an Italian era, Autoblog. FCA is only the holding company. A new private subsidiary will become Fiat's Italian manufacturing company, not to mention various other corporations to handle its finance, insurance, and other manufactured products.
        gtv4rudy
        • 4 Months Ago
        @aatbloke1967
        Maybe Volkswagen will swoop down and eat both of them.
      Jesus!
      • 4 Months Ago

      Looks like my first Chrysler will be my last....literally. 

      Bill Burke
      • 4 Months Ago
      I don't consider this merger to be the end for Fiat or Chrysler, but a new beginning, built on the history, business culture and unique experiences of both outstanding companies. The world has changed, it's a global economy and global business structures molded across oceans and continents are the only models for success. To survive, automobile companies the size of Fiat and Chrysler had to find common ground. It is the intelligence of Sergio Machionne that has lead the way to cross cultural respect, honest evaluation of assets and weaknesses and a vision that give autonomy to both former companies while building from the best of both. The results have been astounding as Chrysler is the hottest domestic manufacturer, has improved quality and consumer demand for it's products to new highs and global markets are being established through American, European and emerging global markets to explode sales and profits in a manner beyond either former company. Although still having it's teething problems, F.C.A. is not the end of an era, but an exciting new chapter in the proud history of two great companies who are luck to have each other.
      Scooter
      • 4 Months Ago

      Its a new era. Heritage is a marketing gimick for sales sake. It's all about money. 

        SloopJohnB
        • 4 Months Ago
        @Scooter
        Has it ever been about anything else? You don't'a make'a money, you'a go'a broke, paisano!
      SloopJohnB
      • 4 Months Ago
      This appears to be the first of the automobile companies to try an inversion….Chrysler will be an offshore company so that profits posted offshore are not taxable in the US. GM should only buy BMW or Audi or some other European company, preferably headquartered in Dublin, Ireland, and call themselves a non-US company. There would be billions of dollars saved in US taxes.
        Larry Litmanen
        • 4 Months Ago
        @SloopJohnB
        I am amazed at peoples ignorance. Companies never want to take money out of the country they made it in to avoid double taxation. Google has BILLIONS stashed in Europe and refuses to bring it to USA to pay taxes on it. Whatever money GM would have made in USA it would have paid US taxes on it, and if it moved money to Dublin it would pay EU taxes as well.
        RGT881
        • 4 Months Ago
        @SloopJohnB
        I see you're an avid Jon Stewart follower. Well, US corporate tax rate is amongst the highest in the world, and the highest in the developed world. Couple that with local and state taxes, you're looking at 40%. http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx
          Skicat
          • 4 Months Ago
          @RGT881
          @RGT881 And I see you're an aid Faux News watcher. Please produce a single annual report that shows that ANY U.S. corporation paid anything remotely approaching the supposed "highest in the developed world. You CAN'T. Meanwhile: A report conducted by public advocacy group Citizens for Tax Justice (CTJ), focuses on the 288 companies in the Fortune 500 that registered consistent profit every year from 2008 to 2012. Those 288 profitable corporations paid an “effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate,” CTJ states. http://rt.com/usa/low-corporate-tax-rates-275/
        aatbloke1967
        • 4 Months Ago
        @SloopJohnB
        FCA's US-situs American subsidiaries will all be paying their fair share of US corporation tax.
      Arthur Rossi
      • 4 Months Ago
      This business set up is optimized 100 percent tax wise. Combining UK's Corporate tax which is very low with its legal registration in the Netherlands which is a tax heaven has obviously been driven by tax purposes. Nevertheless this doesn't mean that the industrial activity will move outside Italy nor now neither in a forseeable future
      dukeisduke
      • 4 Months Ago
      It might be the end of an Italian era, but they're all sitting in American-made Herman Miller Aluminum Group chairs, designed in the 1950s by Charles Eames.
      lrx301
      • 4 Months Ago

      Typical Italian job, took them how many years to finish the merger? For this long, Damiler already separated with Chrysler.

        Bill Burke
        • 4 Months Ago
        @lrx301
        Let's see who gets it right in the end. As a former Daimler-Chrysler stock holder I can't tell you what a bunch of elitist idiots the Germans were and the main reason the merger failed, as well as the fact that failing Mercedes products forced Daimler to drain Chrysler cash reserves to save themselves and their resentment at how good Chrysler really was at the engineering game. The Italians for themselves have made great strides in their historic engineering and design prowess and are poised to surpass their Germanic rival in the automotive arena. The big difference is that Fiat respects and functions as equals with their American partners. So if that is "typical Italian behavior" God bless them from one Chrysler loyalist.
      Avinash Machado
      • 4 Months Ago
      It's a global world.
      Edsel
      • 4 Months Ago
      How do you say "Fix It Again Tony" in Dutch? (Sorry. I know that's not fair but I couldn't help myself)
        Bill Burke
        • 4 Months Ago
        @Edsel
        Do you have any idea how passe and ethnically insensitive your comments are? Italians on both sides of the Atlantic have proven their intellect, skill and achievements, even if their mothers chose to name them Anthony. Grow up !
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