Fiat merges with Chrysler or dies

After 115 of being a renowned Italian brand, Fiat is now siding with its US unit to make Fiat Chrysler Automobiles.

The new company will be based in the UK but will be registered under Dutch law in order to pay less taxes.

The merger will happen as soon as October of this year.

Fiat president, John Elkann, said that: ‘We’re presenting to you a merger project that means a new headquarters and the changing of our name. The future of our company begins at this meeting today.’

Fiat-Chrysler will be the world’s seventh largest car-maker and the merger is essential for the company’s survival and ability to attract foreign capital.

Fiat was founded in 1889 and, within 10years, it became Italy’s largest car-maker.