AutoIndustriya.com Team / FCA Press | February 02, 2014 11:26
Board assures operations to remain the same despite merger
Following the formalization of Fiat’s acquisition of Chrysler, the board gave birth to a new organization called Fiat Chrysler Automobiles (FCA), a fully-integrated global automaker.
"A new chapter of our story begins with the creation of Fiat Chrysler Automobiles. 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 each with a great history in the automotive industry and different but complementary geographic strengths. FCA allows us to face the future with a renewed sense of purpose and vigor," said John Elkann, Chairman of Fiat.
A parent company called Fiat Chrysler Automobiles N.V., has been established in the Netherlands to serve as middle ground. FCA’s common shares will be listed in both New York and Milan. Under the proposal approved by the Fiat Board, Fiat shareholders will receive one FCA common share for each Fiat share they hold and the FCA common shares will be listed on the New York Stock Exchange (NYSE) with an additional listing on the Mercato Telematico Azionario (MTA) in Milan.
"Today is one of the most important days in my career at Fiat and Chrysler. Five years ago we began to cultivate a vision that went beyond industrial cooperation to include full cultural integration at all levels. We have worked tenaciously and single-mindedly to transform differences into strengths and break down barriers of nationalistic or cultural resistance. Today we can say that we have succeeded in creating solid foundations for a global automaker with a mix of experience and know-how on a level with the best of our competitors. An international governance structure and listings will complete this vision and improve the Group’s access to global markets bringing obvious financial benefits," said Sergio Marchionne, CEO of Fiat and Chairman/CEO of Chrysler Group.
In addition, a new loyalty voting structure has been proposed to foster the development and continued involvement of a core base of long-term shareholders. This gives FCA common shareholders of at least three years voting rights to facilitate a stable shareholder base and reward long-term share ownership, while allowing the Group enhanced flexibility to pursue strategic opportunities. The special voting shares will be subject to specific terms and conditions.
The meeting also assured that all activities forming part of FCA will continue with the same mission, including manufacturing plants in Italy and elsewhere around the globe, with no impact on headcount. A long-term business plan will be presented to the financial community by May 2014.
After a first phase of presenting both corporate logos side-by-side to respect the history of both Fiat and Chrysler brands, the FCA merger has now been given a new identity to represent a unique corporate culture, a common vision and a Group with an international reach.
The new identity is based on the group acronym so as not to severe the roots, while being easy to understand, pronounce and remember, while being well suited to a modern international marketplace. It was created by RobilantAssociati.
According to the Fiat Chrysler Automobiles:
"The three letters in the logo are grouped in a geometric configuration inspired by the essential shapes used in automobile design: the F, derived from a square, symbolizes concreteness and solidity; the C, derived from a circle, representing wheels and movement, symbolizes harmony and continuity; and finally, the A, derived from a triangle, indicates energy and a perennial state of evolution."
The new logo will be adopted by Fiat and Chrysler as soon as practicable and before completion of the reorganization of the new Group.