Ford Motor Co. and Italian automaker Fiat SpA have signed definitive agreements to merge their farm and industrial machinery subsidiary units and form a new company headquartered in London.
The two automakers had first announced their intentions to merge Ford New Holland and FiatGeotech in late July. Fiat will have an 80 percent stake in the new company, while Ford will hold 20 percent and receive an undisclosed cash payment from Fiat.Both Ford and Fiat said the new company will preserve the separate brand identities and dealer networks of both Ford and Fiat, although design, research and engineering efforts will be combined.
A name for the new company has not been chosen, pending regulatory approvals of the merger in both Europe and the United States, expected to take three or four months. But Ford spokesman Bert Serre said the new name will not have the words "Ford" or "Fiat" in it, and that there will be an employee contest to select the name.