NEWS » Ferrari to leave Italy?
Ferrari to leave Italy?
Do you think that one day the Coliseum could stand up and walk away? And maybe even leave Italy? hoping to be treated better? Being as historical Italian companies such as Fiat left the country and now also Ferrari is wanting to do the same, at least as far as paying the taxes is concerned, it would be a terrible blow to the image of made in Italy in the world. Thousands of Italians keep on leaving the country in search of employment and professional satisfaction. Unemployment rates are near record levels and last year, according to statistics agency Istat the number of emigrants from Italy rose to 19 percent.
Ferrari, the ultimate luxury Italian brand, which uses the colours of the Italian flag in its logo, has announced its intention to move its fiscal residence outside Italy to save on corporate taxes. The move will be one of the first steps of Ferrari’s spinoff from Fiat Chrysler Automobiles. Fiat Chrysler plans to list 10 percent of Ferrari by the third quarter of next year. New York has been considered as the main market and Milan as the second.
Fiat Chrysler prepares to sell a $2.5 billion mandatory convertible bond and at least 87 million shares from the spinoff of Ferrari to raise $5 billion to cut debts. The company said last week that the financing is backed by distributing 80 percent of Ferrari stock to Fiat Chrysler investors.
Fiat Chrysler has already its fiscal residence abroad in the Netherlands, is listed on the New York Stock Exchange and is based in London for tax reasons. Fiat Chrysler is benefiting from the U.K.’s corporate tax rate declining from 21 percent to 20 percent next year.
Just when the new work regulation “Jobs act” has been approved and the prime Minister Mattero Renzi advocates the reform as the only way to make Italy more attractive to foreign investors, Ferari’s move shows that Italy’s fiscal system is still inconvenient for Italian companies and its fiscal system is clearly not competitive.
The moving of Ferrari’s headquarters outside Italy would represent a symbolic defeat for the country.
Italy can’t attract other countries’ investments if it can’t even keep those companies that should pay taxis in the country.
There has been no comment from the London-based Fiat Chrysler but Marchionne, who is also Ferrari’s chairman, said the company will still have its roots in Italy.