Marchionne Says He Must Be Open About Chrysler-Fiat Corporate Governance

Sergio Marchionne, the chief executive officer of Chrysler Group LLC and Fiat SpA, said he must be open about corporate governance matters between the two companies.

Italians’ concerns that a combined Fiat-Chrysler may put its headquarters in the U.S. are overblown, he said today.

No decision has been made on governance or a headquarters location, he said, adding that the issue isn’t one to be dealt with before 2014.

“It was a typical overreaction to an honest reflection of the issues that must be dealt with,” Marchionne said in an interview at the Chicago Auto Show.

Last week in San Francisco, Marchionne told reporters that two corporate structures for Fiat and Chrysler don’t make sense after the U.S. automaker goes public. Chrysler has said it could make as much as $500 million in net profit this year and is aiming for a public offering in the second half.

“Hopefully in the next two or three years we’ll get the corporate-governance issue resolved and we’ll end up looking at one entity,” Marchionne said last week in San Francisco, according to a transcript. “And for all I know it could be based here, which would not be a bad idea. But I don’t know. I don’t want to start making prognostications.”

To contact the reporter on this story: Tim Higgins in Detroit at thiggins21@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net

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