MILAN Jan 30 Fiat wants to establish
the tax domicile of the new Fiat Chrysler Automobiles group in
the United Kingdom to help woo American investors, the Italian
car maker's chairman told Italian daily La Stampa in an
interview published on Thursday.
The Turin-based car maker, which this month bought out the
minority investor in its U.S. Chrysler unit in a $4.35 billion
deal, had said on Wednesday the holding group would be
registered in the Netherlands and have its tax domicile in
Britain, cementing a politically sensitive shift away from
"The advantage to (move our tax domicile) to London is
linked to the more favourable rules for American investors,
which we hope to attract with the merger," John Elkann was
quoted as saying, without being more specific about what rules
he was referring to.
Elkann told the Turin daily that Fiat would not pay less tax
as a consequences of these changes. But some experts say
registering the group in the Netherlands with a UK tax domicile
could ultimately deprive the United States and Italy of tax
revenue on some of the company's overseas earnings.
Elkann reiterated that the new group would not move its
115-year-old headquarters out of Italy.
"The merged company will have more than one headquarters ...
with Turin at the centre of a huge market that covers Europe,
Middle East and Africa," Elkann said.
The Agnelli family's scion said plans to relaunch the
group's Alfa Romeo brand were at an advanced stage and fitted
within a strategy of betting on high-end market segments that
had proved very successful with Maserati.
"The time to relaunch Alfa Romeo has come ... and our
country will be playing a key role," he said.