Fiat Could Relocate HQ To Detroit
When is an import brand no longer an import brand? When it moves to North America. The Detroit Bureau has published a story describing a potential shift in Fiat's corporate headquarters from Italy to Detroit, Michigan. The relocation would be part of an effort to bring Chrysler, Fiat's subsidiary, in closer orbit with the European brand. If CEO Sergio Marchionne has his way, the eventual end-game would be a complete merger between the two car companies.
The decision to merge Chrysler and Fiat - and relocate to Detroit - becomes easier to understand when looking at the current perils of the European car market. With slow sales dragging the bottom line, and financial chaos predicted in several EU member countries, Marchionne has been eyeing Chrysler's resources as a potential lifeline to help stabilize Fiat against future losses. In its current iteration, Fiat does not have access to several of Chrysler's cash and asset reserves, which has led the giant to pursue its options in eventually gaining complete control over the American company's books.
