Investors Will Then Focus On Long-term Plan.
The Fiat-Chrysler merger gained momentum, after a hurdle arising from the treatment of minority shareholders was jumped.
The company can now continue with its plans which include moving tax residency to Britain, the HQ to Amsterdam, the stock market listing to New York, and the name to Fiat Chrysler Automobiles NV.
The company said it expects formalities to be completed by mid-October.
Fiat’s net debt of €9.7 billion is the highest of any major auto manufacturer. CEO Sergio Marchionne has ruled out raising more equity to ease this burden.
When the merger is complete, Fiat Chrysler can step up its long-term plan. This includes raising vehicle sales by more than two million by 2018. Alfa Romeo is charged with accounting for 400,000 of the target. Last year Alfa Romeo sold 74,000 cars. Under a previous ambitious but failed plan, Alfa was supposed to sell 500,000 cars this year, with 85,000 in America. Jeep must raise its sales to 1.9 million by 2018 from around 700,000 now.
Marchionne wants earnings before interest and tax (EBIT) to increase from €3.5 billion in 2013 to between €8.7 billion and €9.8 billion by 2018.