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Fiat Chrysler aims for October NYSE listing

Fiat Chrysler Automobiles aims to list its shares on the New York Stock Exchange on October 1st, chief executive officer Sergio Marchionne said Friday.

Fiat Chrysler aims for October NYSE listing
Photo: AFP

The Italian giant changed its name after completing the purchase of Chrysler in January, nearly five years after Marchionne took the helm of the US automaker as it emerged from a government-backed bankruptcy restructuring.

The company said its shares would be listed in New York and Milan, and that Fiat shareholders would receive one Fiat Chrysler common share for each Fiat share they hold. Fiat Chrysler will be resident in the UK for tax purposes.

"October 1. That's the target," Marchionne told reporters during a tour of a Chrysler plant in suburban Detroit, Michigan.

"But it's a target. It could slip thirty, sixty or ninety days," he said, noting the company has to prepare an extensive set of documents before it can actually list its shares on the NYSE.

Marchionne also said he does not believe the crisis in the Ukraine will have any spillover effects on the European economy or Fiat Chrysler's investment in Russia, where it is preparing to build Jeeps with a Russian partner.

"It's an unfortunate set of circumstances," Marchionne said. "It should be resolved diplomatically."

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ECONOMY

Fiat promises no job cuts in return for state aid: report

Fiat Chrysler has agreed to the conditions laid down for a state-backed €6.3 billion euro loan, including a promise not to relocate or cut jobs, Italy's Sole 24 Ore daily said Sunday.

Fiat promises no job cuts in return for state aid: report
Robots manufactured by Comau are pictured on the assembly line of the Fiat 500 BEV Battery Electric Vehicle. Photo: AFP

The state auditor has approved the guarantee, but it still needs to be signed off on by the economy ministry, the paper said.

The request for state support on such a large loan has proved controversial, particularly with the company's corporate headquarters in Amsterdam.

FCA — which directly employs close to 55,000 people in Italy — has said the loan is essential to help the group's Italy operations and the whole industry to weather the crisis triggered by the coronavirus pandemic.

The company will commit to investing 5.2 billion euro in Italy on new and existing projects, and up to 1.2 billion euro on its 1,400 or so foreign suppliers, said Sole 24 Ore, Italy's financial newspaper.

 

FCA will also pledge not to cut any jobs before 2023.

The loan will be funded by Italy's largest commercial bank Intesa San Paolo and 80 percent guaranteed by export credit agency SACE, the daily said.

The government has said FCA would face sanctions if it failed to stick to the conditions laid down for loan. Sole 24 Ore said the fine for breaking the agreement could be in the region of 500 million euros.

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