Italy Claims FCA Financial and Legal Offices Move To The UK Has Hurt It Financially

It’s called Corporate (Tax) Inversion. It also happens on an individual basis when primary residency is changed from a high tax state to lower tax state. Want to stop it, lower taxes.

A sign of how fragile the Italian economy is.

A sign of how fragile FCA is. Sales are collapsing. No new product. Now this.

This isn’t a negative for FCA it’s a positive. It’s a big negative for the Italian government treasury.

This is a negative for FCA because it goes to the heart of incoherent management.

This happened in either 2015 or 16, its worked well for FCA, as far its management is concerned incompetence is a better word although incoherent does work.

Here’s an example of incompetence related to the moving of the company from Italy to the Netherlands. The staff that was charged with executing the move from Italy to the Netherlands apparently never bothered to look into or prepare for how that move would effect the US residency status for the Italian nationals that were living and working for FCA in the US.

When the move happened the Italian national’s employment status was voided for them and their families. They had to leave the US immediately, their spouses had to leave their jobs, children had to leave school and return to Italy to refile paperwork to be able to work in the US. This took about 6 weeks to get the proper paperwork. At the time that effected a large percentage of the staff at Maserati North America.

On the incoherent side, Manley announced today that Davide Grasso is now the COO of Maserati. His background is in marketing in the athletic footwear industry for Nike and Converse. Zero automotive.

I thought the plan when you made it big in the UK was always to move to Monaco or some other tax haven as taxes by and large were too high?

Monaco is a "Dodge" right?

That’s individual taxes not corporations. FCA is actually based in the Netherlands not UK

I am unaware of a current automobile from Dodge called the Monaco

You use of the verb "is" is incorrect.

@TomM It was a pun that your dementia-ridden brain was incapable of deciphering which indicated that your default cognition skills were in serious doubt even before the dementia. #GoAway

Zero automotive experience is not necessarily a bad thing in the auto industry. Its more about the basics of properly running a company. Alan Mulally turned Ford around and helped them restructure. Chrysler has historically been run poorly by many CEO's over the past 40 years. FCA is simply another example of poor management. Fortunately Marcionne was able to see the benefit of the Jeep brand and Ram brand. While the products themselves pretty much suck people buy them in droves and its been able to prop up FCA's bottom line. I'm not sure the point of Fiat or Alfa anymore in the USA unless they were owned by Hyundai or Kia. At least then there could possibly be engineered reliability brought into their products. Its clear at least for the next few years that Jeep and Ram will survive in spite of themselves. If Italy were smart they would court Japanese or Korean car manufacturers to invest in plants in Italy. They should forget about FCA.

The leader has to understand brand values and then has to be strict in directing the company to create products that fit the brand values and which has no excuses for not measuring up. Styling has to be on point. Quality has to be on point.