Chrysler Group Will Remain a U.S. Legal Entity After Fiat Merger

Fiat SpA will absorbed by Fiat Chrysler Automobiles NV after the Italian carmaker finalizes its acquisition of Chrysler Group LLC later this year.

But CEO Sergio Marchionne says Chrysler will remain a separate legal entity in the U.S. even after the merger is complete.

FCA will be set up as a Netherlands corporation but with tax residency in the U.K. under rules that apply to EU companies. Since Chrysler is an American company, it will continue as a U.S. entity.

Marchionne tells reporters that Chrysler's full name and legal form is likely to change. But he shrugs off the details as minor. Meanwhile, he says the timing of a Fiat shareholder meeting to approve FCA as the merged companies' new name has not yet been set.