After Britain referendumed themselves right out of the European Union last week, there was a lot of speak about how the country’s automakers would fare in the wake of the Brexit.
But what about an Italian-American automaker? Right now, investment bank Goldman Sachs removed Fiat Chrysler Automobiles from their “conviction” acquire list, citing uncertainty more than the fate of the EU, Bloomberg reports.
The list names stocks that the bank’s investment braintrust anticipate to outperform. When a company gets on the list, investors can’t be far behind, hoping for a bigger-than-anticipated return on their investment.
Goldman Sachs stated it removed FCA from the list due to fear that Britain’s exit from the EU would decrease economic growth throughout the EU, hampering vehicle sales. This, regardless of the reality that FCA claimed the Brexit would have small effect on its operations, regardless of getting relocated its tax residency to the UK in 2014.
Ten days ago, FCA CEO Sergio Marchionne downplayed worry about the looming referendum in a media scrum, saying a potential “Leave” vote was “not that disastrous” for his organization.
This morning, Marchionne spoke about the problem at a Fiat launch in Italy. “We don’t like the (outcome of) the vote, but a clear notion was expressed about the EU and so this ought to be revised,” he told an Italian wire service, adding that the vote should serve as a wake-up contact to the EU to spend far more consideration to person countries’ appeals for reform.
Marchionne essentially referred to as for absolutely everyone to keep calm and carry on.
Regardless of being removed from the list, it wasn’t all undesirable news for Marchionne nowadays. Goldman Sachs kept a “buy” rating on FCA’s stock.