NEWS

Fiat-Chrysler red lights rumor that Ferrari will move out of Italy

Friday, Dec 12, 2014

The automaker refuted the idea that the Italian sports car brand, a source of national pride, would flee for lower taxes in another country.

Fiat-Chrysler is putting a stop to rumors that Ferrari – its quintessential Italian sports car line – would move out of Italy for tax breaks.

“These rumours have no grounds,” the company said in a statement. “There is no intention to move the tax residence of Ferrari SpA outside Italy, nor is there any project to delocalize its Italian operations, which will continue to be subject to Italian tax jurisdiction.”

The company went from 0 to 60 in an effort to dispel the rumor, which started early Thursday and sent shockwaves throughout the world. Would the Italian maker of sports cars – made with all the care of fine Italian wine, swanky Armani suits and frilly Versace fashion – consider a move to the Netherlands?

The answer was a resounding no.

Ferrari said in October that it is planning a spin-off from Fiat-Chrysler at the end of October. Moving its nominal headquarters to a lower taxed country may have sounded like just another bit of financial engineering.

Fiat-Chrysler, after all, moved its headquarters to the U.K. as well as the legal portion of the company to the Netherlands, according to Reuters. That move, however, is a snub to Italy where Fiat has been based for the last more than 100 years.

Ferrari will be listed publicly in the U.S. and possibly on a European exchange as well, according to Reuters. Earlier today, Fortune reported that Ferrari was considering a move based on a Bloomberg story.

 

http://fortune.com/