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Chrysler And Fiat Move Closer To Merger: Report

Sergio Marchionne

Sergio Marchionne

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It’s been a whirlwind romance for both Chrysler and Fiat. Just two years ago the pair weren't even dating, and now comes word that their marriage is imminent. The Detroit News is reporting that upcoming management changes, expected to be announced next week, will streamline the merger of Chrysler and Fiat into a single entity.

Both companies will announce their second-quarter profits on Tuesday, July 26.  At the same time, CEO Sergio Marchionne is expected to appoint 25 global leaders for areas such as manufacturing, purchasing, engineering and quality. Those picked will have authority for both Chrysler and Fiat, which will eliminate a number of redundant positions within the current organization.

It’s likely that Marchionne will discuss plans for a global restructuring of both companies next week, too. Reports are that the company will announce four regional headquarters, one each in North America, South America, Europe and Asia. North America would be run from Chrysler’s current Auburn Hills location, while Fiat’s offices in Turin, Italy would be used as the European headquarters.

Fiat currently owns 46 percent of Chrysler, but that’s expected to increase to 51 percent later this year. Long term, Marchionne has indicated a desire to acquire even more shares of the Auburn Hills based automaker.

 [The Detroit News]

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