The name change on Jan. 29 came eight days after the Italian automaker bought 100 per cent of Chrysler Group LLC on Jan. 21.
The new holding company is incorporated in the Netherlands. Its stocks are listed on the New York Stock Exchange. Research, engineering and financing of the FCA brands, Jeep, Ram, Dodge, Chrysler as well as Fiat, Maserati, Ferrari, Lancia and Alfa Romeo, will be done in the familiar confines of Auburn Hills, Mich., and Turin, Italy.
While FCA headquarters will be in the Netherlands, Sergio Marchionne, FCA’s CEO, says its real location will be in the clouds since the 22 decision- makers spend hours on jets flying from factory to factory.
The new logo links the two companies, he said, “as opposed to the retention of one organization over the other.”
He pointed out that Chrysler and Fiat have teamed up to design the Dodge Dart, and the Chrysler 200.
While Fiat may be the first name on the logo, the financial reality is that Chrysler’s strong sales rising by nine per cent in 2013 and a net income that quadrupled to US$1.62 billion in the last quarter of 2013 – are keeping Fiat afloat.
The Italian automaker has been struggling. Its losses would have doubled to US$321 in 2103 without the cash from Chrysler.
Marchionne said the new company would invest nearly US$11 billion in product development and facilities in a business plan the automaker would unveil in May.
“A journey that started over a decade ago as Fiat sought to ensure its place in an increasingly complex marketplace has brought together two organizations with a great history and different, but complementary geographic strengths,” Fiat chairman John Elkann said.