Ciao, Italy! Fiat ends 115 year heritage with the newly formed FCA

Fiat, Italy’s largest car manufacturing company, begins a new chapter in its history this month as it officially merges with automotive giant Chrysler and moves its headquarters to the US after 115 years.

The new company Fiat Chrysler Automobiles, or FCA, which will be Dutch-registered, UK-based and listed on the New York Stock Exchange after shareholders officially approved the merger last week. With the merger in place, the two car companies will have officially created the seventh-largest car company in the world.

With the goal to become a global powerhouse, CEO Sergio Marchionne aims to sell nearly two-thirds more cars than the companies are currently handling by 2018, boosting their deliveries to 7 million cars a year as well as an annual group revenue exceeding 130 billion euros. Marchionne aims to accomplish this with an astounding €55 billion investment to match these ambitious plans. By combining resources with Chrysler, it is hoped that FCA will compete with heavyweights such as Ford, Volkswagen and Toyota.

FCA will move into its new London HQ by the end of the year. Until then, the new company will temporarily set up offices in Slough, approximately 20 miles from the centre of London. Despite its shift to the UK, FCA will still maintain certain functions in Fiat's old home in Turin.

Although Italy will play a less central role overall, it will still continue to have a significant position in vehicle production. Marchionne has also promised to keep Fiat’s Italian factories open and rehire about 30,000 line workers to handle the production of new models from Jeep, Alfa Romeo and Maserati.

The company is expected to begin trading on the New York Stock Exchange in October, should there be no challenges from investors or shareholders.