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Italian government to lean on Fiat's Marchionne to commit to country
Sun, 26 May 2013With the recent chatter that Fiat is looking to move its global headquarters to the US following a complete merger with Chrysler, the Italian government is voicing its opinion on the matter. Facing the potential job loss from the automaker leaving the country, Italy's industry minister is meeting with Fiat CEO Sergio Marchionne in what will likely be a plea to keep the company based in Turin rather than moving to Auburn Hills, MI - if indeed it is able to acquire the additional 41.5 percent of Chrysler currently owned by the United Auto Workers.
According to Bloomberg, Fiat is Italy's biggest private employer and unemployment is already nearing a 20-year high. The non-car side of Fiat, Fiat Industrial, is already planning a move to the UK, so it goes without saying that Fiat moving would be a pretty big blow for the Italian economy. In the article, Fiat says that the headquarters issue is "not on its agenda now," but that statement is far from a denial.
Marchionne completed Fiat-Chrysler deal from a Florida beach
Fri, 03 Jan 2014Sergio Marchionne is the CEO of Fiat, which as you may have heard, has finally worked up a deal to finish acquiring the Chrysler Group after months of bargaining with the United Auto Workers and its VEBA healthcare trust, which owned just over 40 percent of the American brand. Where was Marchionne when the deal was finally hammered out? Well, not tucked away in a frigid Detroit board room until the wee hours of the morning.
Nope, one of the largest deals in automotive history was reportedly hammered out on the beach - at the home of a banker, in the Florida resort town of Vero Beach. Marchionne traveled to the home of Alain Lebec, a senior managing director at Brock Capital LLC, one of the advisory companies for the VEBA fund, where both sides met to make final arrangements in the $4.35-billion exchange. The location of the final deal, though, is nearly as remarkable as the pace with which it came about.
According to anonymous sources pinned down by Automotive News Europe, before the meeting, the two sides were meeting in Detroit as recently as December 19, which is where Fiat made one of its final revised offers. Naturally, the VEBA made a counter offer, which led Marchionne to initiate the Vero Beach meeting.
Marchionne threatens to move Alfa production out of Italy
Fri, 12 Jul 2013Fiat CEO Sergio Marchionne was unsurprisingly frank when asked by reporters about potential investments in Italian manufacturing for Alfa Romeo and Maserati, giving the Italian government the ultimatum, "Italy should decide if they want [Alfa Romeo's relaunch] to happen here or not as Fiat and Chrysler have several alternatives." Them's fightin' words.
Fiat's issue with the government stems directly from its courtroom clashes with the Fiom labor union. The two are currently embroiled in proceedings over longer shifts and shorter breaks, as Fiom has so far refused to sign a new contract citing revised labor laws that it says are anti-union.
According to Bloomberg, Fiat will be spending over $2.5 billion on development of eight new Alfas and six new Maseratis, in a bid to wrest some of the luxury pie away from BMW, Mercedes-Benz and Audi. But that's only going to happen if the government is willing to play ball and make life easier on Fiat.